State expenditure tops over MVR14bn, revenue remains sluggish

Maldives state expenditure on cumulative terms rise to MVR14,212.1 million (MVR14.2 billion) as of 08 July 2021.

In the recent update from Ministry of Finance, the state body had reported that the cumulative total of revenue inclusive of grants reached only MVR9,462.0 million (MVR9.5 billion), by the review period.

Meanwhile, 76% of the total expenditure went towards recurrent needs of the state while the remaining 24% were injected towards capital expense requirements.

On the other hand, state made 75% of its earnings so far through tax-sources while the remaining 25% consists of non-tax source income sources.

The overall balance for the period gives a deficit of MVR4,750.2 million (MVR4.8 billion) – which continues to stretch further out as the expenditure increment remains significantly ahead of the revenue earned.

Although the budget deficit continues to stretch out, it is still comparatively lower when compared with the balance of MVR5,870.1 million in deficit observed during the same period in 2020.

Moreover, net issuance for the period 04 to 08 July was observed at a surplus of MVR642.3 million.

Government securities worth MVR4,006.4 million were issued during the review period, while securities worth MVR3,364.1 million matured.

Furthermore, the state body had confirmed that the cumulative total of tax revenue hit MVR7,082.4 million (MVR7.1 billion) marking a significant improvement on the corresponding period of 2020.

In 2020, the cumulative total of tax-earnings reached MVR5,560.7 million (MVR5.6 billion) by the same period.

Additionally, the earnings from non-tax sources reached a cumulative total of MVR2,292.2 million (MVR2.3 billion) by 8 July. Whereas, the cumulative total of non-tax revenue by the same period in 2020 had reached MVR2,029.7 million (MVR2.0 billion).

Maldives government had received a total of MVR84.7 million in grants, which is a significantly lower amount compared to the MVR454.2 million it had received during the corresponding period last year.