Ministry of Finance's 'Cashflow Reports' revealed that government expenditure recorded for February was greater than the income generated.
As per statistics, Maldives generated MVR 4.9 million as cash inflow, while expending MVR 5.2 million throughout the month. A total of MVR 1.6 billion was spent by the state as recurrent expenditures.
Maldives has recently begun recording higher state expenditures than income generated. As such, Maldives documented cashflow in the negatives during the month of April, May, August, September and October last year.
Compared to February 2019, Maldives spent an additional 800 million in 2020. The country also noted a loss of MVR 174 million in income within the same period.
Lulls to the tourism sector caused by the COVID-19 pandemic resulted in a loss of MVR 36 million from the Tourism Goods and Services Tax (TGST) this February.
In recent years, recurrent spending has consistently been the highest source of state expenditure. During the past five years, there have been minimal efforts to correct the problem that more state funds are used for day-to-day operations of the government instead of development projects.
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