Maldives govt expends MVR 1 Bn in loan repayments

MMA – the central bank of the Maldives | Photo: MMA

Maldives government has spent MVR 1,006.1 million (MVR 1.0 billion) to repay the loans incurred by the state, reports the Ministry of Finance.

In the most recently updated ‘Weekly Fiscal Developments’ by the Finance Ministry, the state’s public finance progress shows that it has spent MVR 17.3 billion out of the budgeted MVR 47.2 billion total, on expenditure as of May 30, 2024.

Additional to this, from the projected total of MVR 33.5 billion revenues (inclusive of grants) for the 2024 fiscal year, the state has earned a revenue of MVR 14.9 billion.

Owing to a significantly higher expenditure against revenues, the overall balance for the period is a deficit of MVR 2.5 billion.

The recurrent expenditure of the state is now at MVR 13.8 billion; up compared to MVR 13.1 billion observed at the same period last year. However, capital expenditure has observed a sharp decline this year, registering MVR 3.6 billion as of May 30, compared to MVR 6.1 billion seen around the same period in 2023.

The state’s debt obligations do not fall within the recurrent or capital expenditure territory, but are extracted out of the Sovereign Development Fund (SDF) or the International Reserves; wherever or whenever either is applicable.

While the current health of the SDF is unclear, Finance Ministry confirms transferring MVR 486.9 million to the fund during the last week of May.

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