Minister of Finance Ibrahim Ameer on Monday announced the necessity of a supplementary budget of MVR 5.8 billion for 2022.
The minister notes the original budget fell short owing to hiked state expenditure due to the heavy economic brunt from the Russia-Ukraine war. The conflict had dealt a serious blow to the global economy, results of which were felt in the Maldives as well.
The minister announced need for the supplementary budget while proposing the state budget for 2023 during Monday's parliament sitting.
The Russia-Ukraine war drove up global oil prices, which impacted on Maldives; a high fuel reliant country.
The minister further reports fuel subsidy of MVR 342 million for 2022 will surge to MVR 2.3 billion by end of the current fiscal year. Moreover, several infrastructural projects that slowed down amid Covid-19 pandemic, picked up pace driving up state expenditure.
With the inclusion of the supplementary budget, the total state budget of 2022 is expected to rise to MVR 42.8 billion.
Despite an additional budgetary requirement for the state, Minister Ameer highlighted state's earnings increased in excess of initial projections.
Government expects an annual revenue of MVR 26.4 billion to the state, mainly owing to robust improvements in the tourism sector. The state deficit for 2022 will bump up to MVR 13.6 billion with the inclusion of a supplementary budget, which is 14.3 percent of the country's real Gross Domestic Product (GDP).
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