State spending over MVR 18.4 bil; deficit increases over slow earnings

State spending in annual terms reach MVR 18.4 billion as of July 14, 2022, reports Ministry of Finance.

During the same review period, earnings to the government inclusive of foreign grants observed comparatively sluggish gains, at MVR 13.8 billion.

Budget balance for the period gives a deficit of MVR 4.6 billion owing to higher spending against earnings.

State earned a cumulative total of MVR 10.2 billion in tax revenues, while it earned MVR 3.5 billion non-tax revenues in cumulative terms as of the review period.

Capital receipts to the state is at MVR 10.2 million, while grants to the government is at MVR 197.9 million.

On the expense front, state has spent a cumulative total of MVR 13.95 billion on recurrent expenses and MVR 4.5 billion on capital expenses.

Loan repayments by the government by the review week stood at MVR 2.0 billion while transfers to the Sovereign Development Fund (SDF) was at MVR 423.4 million.

Top revenue streams to the state

- Tourism Goods and Services Tax (TGST) - MVR 3.97 billion

- General Goods and Services Tax (GGST) - MVR 1.6 billion

- Import Duties - MVR 1.3 billion

- Business Profit Tax - MVR 1.13 billion

- Rent from Resorts - MVR 1.12 billion

The comparatively higher spending against slower earnings has pushed the Maldives government to exercise new austerity measures, the most recent of it being, Ministry of Home Affairs announcing restraining Independent Day activities only to a flag-hoisting event and a military parade.

Independent Day celebrations are jubilant events, with musical parades along with vehicular floats that often incur heavy expenses from the state's end.