Maldives state faces over MVR1bn of revenue loss in 2020

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The cumulative revenue generated to Maldives government has registered a loss of over MVR1 billion in 2020.

Ministry of Finance reported the cumulative total of revenue generated to Maldives state so far in 2020 was comparatively lower than the income earned in the corresponding period in 2019.

Statistics from the ministry revealed Maldives state only earned MVR4.597 billion as of 26 March 2020, while in the corresponding period in 2019 the cumulative revenue earned reached MVR5.96 billion.

The total loss in revenue was recorded at an approximate MVR1.3 billion.

Revenue breakdown for 2020 shows MVR3.943 billion was earned in tax sources and the remaining MVR631.7 million was earned through non-tax revenue streams.

Maldives have received a total of MVR21.9 million in foreign grants while the capital receipt total reached only to MVR3.7 million so far in 2020.

All revenue streams registered significant drops in the current year compared to the same period in the previous year.

The ministry reports the total revenue earned in tax sources for the same period was at MVR4.376 billion while the cumulative total of non-tax revenues in the said period was observed at MVR1.169 billion.

Meanwhile, grants to state in 2019 was at MVR439.7 million.

The state budget recorded an overall balance at a deficit of MVR1.35 billion in year-to-date basis as of 26 March, while the budget deficit for the current year is estimated to soar over MVR12 billion in light of the COVID-19 viral pandemic outbreak.

The viral pandemic has significantly slowed down the economic activities of all major sectors in Maldives, while the prime economic sector; tourism industry has visibly come to a standstill.

Recently it was reported, more than 50 tourist resorts have temporarily shut down their operations while over 11,000 resort employees were sent off on no-pay leave.

The island nation’s government imposed strict arrival and travel restrictions to several major countries; which include some of the strongest tourist market contributors with regards to tourist arrivals.

Earlier, Maldives President Ibrahim Mohamed Solih estimated the loss on tourism sector is estimated between USD159 million to USD446 million in 2020 in light of the viral pandemic.

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