State deficit gap widens, hits MVR7.6b

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The budget deficit of Maldives state widens as of 20 August 2020 with expenditure soaring higher than revenue.

According to Ministry of Finance in their latest Weekly Fiscal Development, the cumulative total of state expenidture stood at MVR15,810.6 million (MVR15.8 billion).

On the other hand, the cumulative total of revenue stood at just MVR8,255.7 million (MVR8.3 billion).

Moreover, the sluggish increase in state revenue comes as a direct result from the Covid-19 led economic regression in Maldives.

Expenditure composition shows 68% of total spending made on recurrent expenses and remaining 32% on capital expenditure.

Majority of the revenue to state came from tax sources, which took up 82% share of the total while only 18% of the total came from non-tax revenue streams.

Meanwhile, overall balance for the period is a deficit of MVR7,554.9 million (MVR7.6 billion).

There was no net issuance for the review period, 16 to 20 August 2020.

Furthermore cumulative total of tax revenue stood at MVR6,764.1 million (MVR6.8 billion), while non-tax total stood at MVR1,457.4 million (MVR1.5 billion).

Capital receipts stood at just MVR5.2 million while grants to government reaches MVR33.1 million.

Meanwhile, recurrent expenditure has hit MVR10,755.8 million (MVR10.8 billion).

On the other hand, capital expenditure gains to hit MVR5,054.8 million (MVR5.1 billion).

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