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State budget deficit rises to MVR3.6 billion so far in 2022

Mohamed Rehan
28 June 2022, MVT 16:00
[FILE] Minister of Finance Mr. Ibrahim Ameer
Mohamed Rehan
28 June 2022, MVT 16:00

According to the most recent update from the Ministry of Finance, the state budget's deficit has risen to MVR 3.6 billion by mid June in annual terms.

State's budgetary spending in cumulative year-to-date basis rose to MVR15.95 billion by June 16, while earnings to the state, inclusive of foreign grants have reached MVR12.3 billion by the review date.

While the state has concentrated 75 percent of its budgetary spending on recurrent needs and the remaining 25 percent on capital expenses, it has earned 70 percent of its revenue from tax sources with the remaining 30 percent coming through non-tax sources.

Compared to the corresponding period in 2021, state's cumulative tax earnings observed an approximate total of MVR 1.9 billion increment.

Tax earnings to the state so far in 2022 was reported at MVR8.6 billion, whereas tax earnings in the same period last year was reported at MVR6.8 billion.

Cumulative non-tax earnings so far in the current year is observed and increment by MVR 1.3 billion. Ministry of Finance reports the cumulative non-tax revenue total currently at MVR 3.6 billion, while in the corresponding period of 2021, the figure stood at MVR 2.35 billion.

The government has settled MVR 1.8 billion in loan repayments while it had transferred a total of MVR 1.57 billion to the Sovereign Development Fund (SDF) so far.

The current fund size of the SDF is valued at MVR 4.38 billion while the SDF bank balance was reported at MVR 1.4 billion.