Strong budget control reflects on second surplus week

The central bank of the Maldives; the regulatory body on fiscal policies and their implementation | Photo: Sun Online

The Maldives government’s cumulative revenue has been observed higher than the cumulative expenditure for the second consecutive week.

According to the Ministry of Finance, the cumulative revenue inclusive of grants stood at MVR 1,884.5 million (MVR 1.9 billion) as of January 24 (Week 04). On the other hand, the cumulative total of state expenditure stood at MVR 1,470.3 million (MVR 1.5 billion).

With this the overall balance for the period is a surplus of MVR 414.2 million.

Besides this, the earnings have notable improved in the tax-based sources. As such, the cumulative total of tax-revenues for the review date stood at MVR 1,638.3 million (MVR 1.64 billion); which is higher than the MVR 1,281.0 million (MVR 1.3 billion) registered for the same period in 2023.

However, non-tax revenues have dipped compared to the previous year and registered an MVR 246.1 million for the review date, compared to the MVR 454.5 million observed during the same period last year.

Even after factoring in the capital receipt of MVR 1.1 million and grants totaling MVR 6.3 million by the same period in 2023, the revenue for the current year in annual terms is still higher despite the capital receipts for the review date this year is just MVR 0.1 million, without the receipt of any grants so far.

Moreover, the state’s cost-cutting measures are visibly strong. As such, the cumulative total of the state’s recurrent expenditure is at MVR 1,144.0 million (MVR 1.14 billion) as of January 25, 2024 whereas in 2023 for the same period, the total had reached MVR 1,385.9 million (MVR 1.39 billion).

Similarly, the state’s capital expenditure has reduced notably for the current year as well; with a cumulative total of MVR 326.3 million by the review date, compared to the MVR 599.2 million during the same period last year.

All these points towards a strong and more robust system in place by the current administration in addressing budget expenditure and control; which had been recommended previously by notable international financial institutions such as the World Bank and the International Monetary Fund (IMF).

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