2022 budget deficit widens to MVR 10.3 billion

Finance Minister Ibrahim Ameer responds to questions at the Parliament on October 24, 2022. (Photo/People's Majlis)

The state budget deficit this year has widened to MVR 10.3 billion, according to the weekly fiscal developments report released by the Finance Ministry.

According to the statistics, as of December 8, the state received MVR 24.9 billion in revenue and grants. Meanwhile, expenditure surpassed revenue and grants by MVR 10.3 billion.

The biggest contribution to revenue came from tax. The state received MVR 17.9 billion in tax revenue – which made up for 72 percent of total revenue, while non-tax revenue stood at MVR 6.8 billion – which made up for 28 percent of total revenue.

And as of December 8, the state spent MVR 35.3 billion. The greatest spending was on recurrent expenditure at MVR 25.6 billion – which made up for 73 percent of total expenditure.

The state received MVR 326 million in grants, which is short of the MVR 2.9 billion the government had expected to receive.

According to the government, they now expect to receive MVR 1 billion in grants this year.

The government has been hit with criticism over increase in political appointments despite country’s cashflow woes.