The Edition

Latest

Government expenditure at MVR 17.8 billion

Ahmed Aiham
24 September 2020, MVT 13:30
Male' Tour: ROADS / MALDIVES INLAND REVENUE AUTHORITY MIRA BUILDING
Ahmed Aiham
24 September 2020, MVT 13:30

Ministry of Finance, on Wednesday, revealed that the government's cumulative expenditure reached MVR 17.8 billion while generating a revenue of MVR 9.94 billion.

As stated in the ministry's weekly fiscal reports, a total of MVR 12.6 billion were spent as recurrent expenditures of the state, while MVR 5.5 billion was utilized for capital expenditures

Recurrent expnediture

- Salaries, wages and pensions: MVR 6.6 billion

- Administrative and operational expenses: MVR 5.5 billion

Capital expenditure

- Land and buildings: MVR 1.5 billion

- Development projects and investments outlays: MVR 1.5 billion

- Infrastructure assets: MVR 1.2 billion

The Maldivian government estimates a shortfall of approximately USD 450 million (MVR 6.9 billion) in foreign currency and a state deficit of MVR 13 billion in 2020 as a result of the COVID-19 pandemic's impact on the tourism industry.

In light of the pandemic and projected loss in revenue, the finance ministry has decided to review the 2020 state budget and forward recommendations and revisions to the parliament.

Heavily reliant on tourism for revenue, the restrictions on international travel left the country vulnerable to severe economic repercussions. In mid-April, the World Bank projected that Maldives would be the worst-hit economy in the South Asian region due to the pandemic.

MORE ON NEWS