Revenue projected to receive by the government this year lowered

Finance Ministry headquarters in Male' City. (Sun Photo/Fayaz Moosa)

Finance Ministry has forecasted that although MVR 21 billion was projected to be received as revenue and grants for the government in this year’s state budget – this amount might not be secured.

The State Budget for the year 2021 projected the government to receive the following amounts as revenue and in grants:

  •         Tax revenue – MVR 10.8 billion
  •          Non-tax revenue – MVR 8 billion
  •         Grants – MVR 2.2 billion
  •          Proceeds from the sale of assets – MVR 14.8 billion

Finance Ministry’s later statistics forecast that the actual non-tax revenue received up to this point of the year – is lower than what was initially projected.

On this note, although MVR 8 billion was projected initially for non-tax revenue – it had now been decreased to MVR 4.6 billion. This is a 42.6 percent decrease from what was initially projected. Although the non-tax revenue now projected to receive is still an MVR 1.3 billion increase compared to that of last year.

Only MVR 3.9 billion has been received as non-tax revenue as of September.

Finance Ministry attributed that decrease in non-tax revenue to not receiving the amount projected as fees incurred from selling land to exchanging land as of yet.

The non-implementation of new revenue measures proposed for this year is also attributed to the decrease in non-tax revenue.

As of September – the government has received a total of MVR 10.9 billion in tax revenue. Although it was initially projected to receive MVR 10.8 billion – this amount has now been increased to MVR 13.9 billion subsequent to the speedy recovery of the Maldivian economy. The amount received as of present in tax revenue is an increase of 27.7 percent compared to what was initially projected.

With these new developments – it is expected that the total state revenue forecast for this year would be decreased by one billion.

Finance Ministry expects the government to receive MVR 19.6 billion in total revenue by the end of this year.