Ministry of Finance declared on Monday that the budget deficit for 2019 will rise to MVR 5.3 billion by the end of the year, exceeding the deficit of MVR 4 billion approved in the 2019 state budget.
The fiscal strategy report released by the ministry shows that compared to 2018, the budget deficit for this year increased by MVR 1.3 billion.
It is predicted that state income would be at MVR 24.3 billion, while total expenditure is estimated to reach MVR 29.6 billion.
According to Finance Ministry, the revenue for this year will see a 4.1 percent increase compared to the expected revenue in the 2019 budget, including free aid. The ministry attributed the increase to revenue earned as free aid and taxes.
The report further states that expenditures increased due to higher number of employees, expansion of the national health insurance scheme Aasandha coverage, increasing the number of loans and scholarships granted for higher education, and increasing subsidies to maintain the same rates for electricity and food items across the country.
However, the ministry predicted that the deficit would decrease if the state expenditure remained at a constant level by 2021. It further predicted that the budget would be in surplus by 2024.
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