During his Presidential Address to Parliament, President Muizzu said that the country has implemented measures to increase revenue to overcome the financial crisis, and the positive impact on public finances and foreign exchange reserves is now being observed.
President Dr Mohamed Muizzu today said that the government aims to reduce the budget deficit to MVR 9.4 billion this year by reducing recurrent expenditure while increasing revenue.
During his Presidential Address to Parliament, President Muizzu stated that the country has implemented measures to increase revenue to overcome the financial crisis, and the positive impact on public finances and foreign exchange reserves is now being observed.
As a result, the government is expected to receive MVR 39.8 billion in revenue and grants this year, he said.
Despite the economy growing and government revenue increasing, President Muizzu said that there are still major challenges in finances.
"I want to put an end to overspending on state expenditures in excess of revenue. This major national and financial issue must be addressed," he said.
He added that strong measures have been put in place to regulate the expenditures of the state budget, and the implementation of these measures is progressing quickly.
With the measures being taken to reduce expenditure, President Muizzu said that the government aims to reduce the deficit significantly this year and reduce the amount of government debt.
“The target is to reduce the budget deficit to MVR 9.4 billion this year with measures to increase revenue and cut expenditure,” he said.
The budget deficit stood at MVR 13.6 billion in 2024 and MVR 10.7 billion in 2023.
With steps being taken to achieve this goal, President Muizzu expressed confidence that fiscal sustainability will be achieved without any slowdown in efforts to improve the quality of services provided to the people and the pace of development projects.
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