Minister of Finance Moosa Zameer today stated that no new measures to generate revenue have been included in the state budget for the upcoming year.
Presenting the proposed state budget to the Parliament, the Minister stated that the bulk of the revenue will be generated from the existing tax policies. He affirmed that no further changes are planned for these policies. However, he noted that the government plans to strengthen tax enforcement mechanisms.
Typically, measures to increase revenue are included in the budget every year. Last year, several taxes were proposed to be raised to increase revenue. However, this year's budget proposes to increase revenue through the existing revenue policies.
"The passage of the proposed amendments to tax laws along with this budget, aimed at strengthening tax enforcement and the process of securing state revenue, will have a positive effect on revenue generation," he said.
The total revenue and grants for the upcoming year are projected to be MVR 40.3 billion. This is an increase of 6.6 percent compared to this year.
Zameer stated that with the new Velana International Airport (VIA) terminal, tourist arrivals to the Maldives will increase, leading to higher revenue from TGST, Green Tax, and Airport Tax and Fees. Revenue from airport fees alone is projected to reach MVR 2.3 billion next year, with total tax revenue expected to reach MVR 31 billion.
In addition to the revenue, expenditure for the coming year is projected to increase by 11 percent. A total of MVR 49.2 billion is allocated for expenditure next year.
Minister Zameer attributed the increase in expenditure to the government's Pay Harmonization policy, which involves increasing employee salaries. He also stated that the expenditure on Aasandha will remain at a similar level to this year.
