Government proposes MVR 42.6 billion budget for 2023
The budget deficit for the next fiscal year is expected to be MVR 8.4 billion. This is a deficit of 8.1% in terms of productivity or GDP.
Finance minister Ibrahim Ameer on Monday presented a budget of MVR 42.68 billion for next year, with budget deficit expected to be at MVR 8.4 billion.
According to the budget presented to the parliament, revenue and grants are estimated at MVR 32 billion. Therefore, the budget deficit for the next fiscal year is expected to be MVR 8.4 billion. This is a deficit of 8.1% in terms of productivity or GDP.
11.4 billion needs to be raised
According to the budget presented by the minister, MVR 11.4 billion will have to be collected from various stakeholders in the next year to meet expenditure, with 56.3% of the total amount expected to be raised from foreign sources.
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MVR 1.5 billion – from foreign countries for budgetary support
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MVR 771 million – by selling 'blue bonds' for environment-related projects
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MVR 4.1 billion – loans for projects
The remaining funds for the budget are planned to be secured from domestic sources, with MVR 4.7 billion expected to be raised through bond sales.
Debt likely to rise next year
Public debt is expected to rise by MVR 8 billion in the next year, taking the country's total debt to MVR 113.7 billion. It is 108.9% of GDP.
Debt details:
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MVR 62 billion – domestic debt
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MVR 40 billion – external debt
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MVR 11.7 billion - guaranteed debt
Recurrent expenditure accounts for major chunk
The government has budgeted MVR 40.5 billion directly for government spending by deducting loan repayment costs and payments to foreign financial institutions.
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MVR 28.6 billion – recurring expenses; 67% of the total budget
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MVR 8.4 billion - PSIP; 20% of the budget
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MVR 5.6 billion – capital expenditure; 13% of the budget
In this year's budget, expenditure has been mainly divided into seven sectors:
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MVR 5 billion - Health sector
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MVR 3.9 billion – Social Security
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MVR 4.6 billion - Education sector
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MVR 2.8 billion - Housing
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MVR 2 billion - Protecting the environment
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MVR 10.4 billion – Economic and industrial growth
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MVR 5.2 billion - Defence
Some of the notable expenses include:
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Construction of tertiary hospitals in different areas - MVR 73 million
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L. Gan cancer hospital - MVR 54 million
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Revising allowances for people with special needs - MVR 341 million
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Fenaka, for sewerage services - MVR 180 million
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Land reclamation - MVR 1 billion
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Greater Male bridge - MVR 792 million
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Velana International Airport's new terminal - MVR 686 million
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Salary hike for healthcare workers - MVR 493 million
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Gulhifalhu Port - MVR 308 million
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Development projects in Addu - MVR 422 million
Highest revenue from T-GST
T-GST will account for the highest revenue, with MVR 9 billion expected to be generated from the tax. The next highest income segments include:
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MVR 4.4 billion – Business and property tax
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MVR 4.2 billion - General GST
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MVR 1 billion - Green Tax
Non-tax revenue is expected to generate MVR 6.3 billion next year:
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MVR 871 million - Airport Development Fee
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MVR 1.3 billion - Interest profits
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MVR 1.7 billion – Resort rent
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MVR 778 million – Registration and licence fee
