State budget deficit reaches MVR2 billion

By the end of the first nine months of this year, expenses higher than revenues have left the state with a budget deficit of MVR2 billion.

The weekly Government Revenue and Expenditure Summary published by the Ministry of Finance shows that revenue is at MVR7.9 billion, while expenditure is at MVR9.9 billion. Also, MVR1.6 billion was spent on loans and repayment of loans.

The government spent MVR7.1 billion on recurrent expenses, and MVR1.3 billion on capital expenses.

The biggest percentage of recurrent expenses was on salaries of employees, at MVR3.6 billion, followed by office operation expenses at MVR3.5 billion. MVR1.6 billion of office operation expenses was spent on subsidies.

Expenses were highest at Education Ministry, at MVR1.5 billion. Finance Ministry spent MVR3.3 billion from its special budget, and Health Ministry spent MVR1.2 billion.

The Parliament spent MVR125.1 million, while President’s Office spent MVR86.2 million.

Revenues of MVR5.5 billion were received from tax, of which MVR2.3 billion was from Business Profit Tax.

Finance Ministry estimates that the government budget of MVR14 billion will reach MVR18 billion by the end of the year, which will result in a deficit of about MVR3.4 billion. The International Monetary Fund (IMF) has also expressed concern over the rising expenditures of the Maldivian state.