Ministry of finance forecasts state debt to increase to MVR 129 billion in 2024.
The ministry, in its Fiscal Strategy Report, stated that the debt-to-GDP ratio is expected to increase by 111 percent next year, and the national debt is projected to rise to MVR 130 billion in 2025.
The ministry aims to reduce the debt-to-GDP ratio by 93 percent in 2026, which is also the year with the highest repayment by the state to settle outstanding loans. The government is expected to pay MVR 11.5 billion in loan repayments in 2026.
The government is expected to repay MVR 2.5 billion in loans next year.
Additionally, the government will utilize state revenue to spend for recurrent expenses and maintain the budget's primary deficit-to-GDP ratio at 5 percent.
However, the 2023 budget deficit-to-GDP ratio is a negative 6.3 percent, which a deficit of MVR 11.5 billion.
The ministry forecasts a budget deficit of MVR 9.8 billion in 2024.
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