Progressive growth of the Maldives economy is restrained without reducing the budget deficit, according to the Minister of Finance Ibrahim Ameer.
While submitting the 2024 state budget during Tuesday's sitting, November 14, the minister emphasized on medium-term deficit reduction for fiscal sustainability.
"Due to the major crises in the past four years, the fiscal stability has been in detriment, but after the Covid-19 pandemic we began taking reformative action which was challenged again with the price inflation of fuel in the global market. However, progressive growth is restrained without deficit reduction," Ameer said.
The minister also highlighted the government is required to pay USD 1 billion (MVR 15 billion) in debt repayment in 2026, making it the largest sum to be repaid so far.
"We are working on reducing budget deficit risks and improve the government's ability for debt repayment. We are working on improving the country's fiscal status and increase our credit rating as well. Should things proceed according to plan, the government will possess the ability to repay the debt in 2026 or refinance it, or even proceed with any other relevant strategy," Ameer added.
He further said that the Sovereign Development Fund (SDF) will exceed MVR 9 billion, with plans to allocate 250 million from this total in US Dollars.
The current SDF total is MVR 7.5 billion, with 124.7 million in US Dollars.
- Total Budget: MVR 49.5 billion
- Total Expenditure: MVR 47.3 billion
- Total Revenue: MVR 33.5 billion
- Budget Deficit: MVR 13.7 billion
- Total State Debt: MVR 105 billion
- Increase Maldives Gross Domestic Product (GDP) to MVR 114.6 billion
- Economic growth rate at 5.5 percent
- Annual Tourist Arrival Total: 2.01 million
- Maldives National Reserve: USD 606 million
- Inflation Rate: 3.9 percent
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