State budget deficit drops to MVR368.8m in week-23 of 2019


Image Source: Finance Ministry

The overall balance for the state budget by the end of the week-23 of the current year showed a drop in the deficit from MVR672.9 million to MVR368.8 million.

The latest of the weekly fiscal development published by Maldives Ministry of Finance has indicated that the state revenue and grants are close in figures to that of state expenditure.

As of 6 June 2019, the cumulative expenditure of Maldives government has reached MVR9,851.6 million (MVR9.9 billion) and the cumulative revenue and grants for the period reached MVR9,482.7 million (MVR9.5 billion).

The difference between expenditure and revenue was comparatively greater during the previous week, with cumulative expenditure at MVR9.8 billion whereas the cumulative revenue and grants reached only MVR9.1 billion – thus the overall balance facing a deficit of over MVR600 million during the previous week.

Looking at the expenditure composition as of 6 June, Maldives government made 77% of its spending on recurrent expenditure and the remaining 23% on capital expenditure.

As for the revenue composition, 77% of the revenue came from tax-based sources and the remaining 23% from non-tax revenue sources.

Maintaining the trend, the most significant receipts were once again received from tax-based revenue sources like TGST, GGST and Import Duty.

During the period of 2nd to 6th June no securities were issued or redeemed.

The cumulative tax revenue as of 6 June 2019 reached MVR7,333.7 million and the non-tax revenue reached MVR1,761.5 million. Capital receipts remained at MVR7.9 million while grants received reached MVR408.9 million.

Tourism Goods and Services Tax (TGST) remained as the top revenue contributor with MVR2,571.2 million collected so far in 2019. Import Duty is the second strongest revenue contributor with cumulative collections reaching MVR1,348.9 million while General Goods and Services Tax (GGST) collected so far reached MVR1,280.6 million.

Other prominent tax revenue sources include Business Profit Tax (BPT) with a cumulative total reaching MVR920.5 million, Green Tax collections at MVR399.6 million while Airport Service Charge collections have reached MVR327.9 million.

From non-tax revenues, MVR468.4 million has been collected so far as rent from resorts while MVR330.6 million collected as Airport Development Fee.

The recurrent expenditure cumulated as of 6 June reached MVR7,633.1 million while the capital expenditure reached MVR2,218.5 million. As for recurrent expenditure, the highest spending was made on the salaries, wages and pensions of public sector employees which has reached MVR4,052.2 million so far in 2019.

The administrative and operational expenses under recurrent expenditure has reached MVR3,243.6 million while under capital expenditure a cumulative total of MVR1,181.2 million has been injected for Public Sector Investment Program (PSIP) and another MVR524.4 million on development projects and investments outlays.

Maldives government has settled MVR480.4 million in loan repayments and transferred MVR468.4 million to Sovereign Development Fund while the SDF Usable Funds reached MVR1,320.0 million.