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Budget Committee approves additional MVR 160 M for 2023 state budget

Mohamed Rehan
21 November 2022, MVT 17:16
Budget 2023 Committee
Mohamed Rehan
21 November 2022, MVT 17:16

Maldives Parliament's budget committee adds extra MVR 160 million into proposed state budget for 2023, approves the amended budget for the following year.

Earlier Ministry of Finance proposed a total of MVR 42.6 billion for the upcoming year's budgetary total.

The amendment of increasing proposed value by MVR 160.5 million comes after two weeks of intensive analysis at the parliament's committee, with back and forth revisions. With this increment, the revised budgetary total for 2023 is MVR 42.8 billion.

The revised budget has been approved with the committee's majority.

From the proposed expenditure total for 2023, 70 percent of its total will reportedly be spent on salaries of public sector employees as well as administrative and operational expenses; which translates to MVR 29 billion. Another MVR 14 billion has been apportioned to Public Sector Investment Program (PSIP), which focuses on infrastructural and urbanization efforts across the country.

Main Budgetary Elements

- Total Budget: MVR 42.6 billion

- Projected Revenues (inclusive of Grants): MVR 32 billion

- Approved Expenditure: MVR 40.5 billion

- Deficit (annual): MVR 14.4 billion

- State Debt (by year end): MVR 113 billion

Based on revenues inclusive grants compared against expenditure, state is in need of an additional MVR 11.3 billion to constrict the deficit gap to MVR 8.9 billion from MVR 14.4 billion.

State will reportedly spend MVR 1.1 billion on loan repayment, while it expects to transfer MVR 4.8 billion to Sovereign Development Fund (SDF). Maldives government aims to secure financing, to narrow the deficit gap, through T-bill or blue bonds transactions in the foreign market with the subsequent sale of T-bills and bonds in the Maldivian market.

Economic Vision for 2023

- Maldives Gross Domestic Product (GDP) growth by MVR 104 billion

- 1.8 million tourist arrivals

- Increase Maldives Reserves by USD 606 million

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