Ministry of Finance has reported the state deficit is expected to increase to MVR 15 billion with the inclusion of the recently proposed MVR 6.5 billion supplementary budget.
According to the ministry's supplementary budget report, the budget deficit will observe the deficit-to-GDP ratio at 14 percent, while the previous deficit-to-GDP ratio was at 8.3 percent for the 2023 fiscal year.
In 2022, state conclude the year with an annual deficit of MVR 11 billion which was 12 percent of the GDP.
The ministry said its primary target in the state budget for the upcoming year is to sustain the deficit-to-GDP at 5 percent.
State expenditure is projected to reach MVR 47 billion by the end of 2023, while state revenue is expected to reach a total of MVR 32 billion.
The government will acquire MVR 3 billion in budget support loans with an additional MVR 1.9 billion financed from treasury-bills (T-Bills) and an external loan of MVR 1 billion to accumulate the supplementary budget total.
Besides the increment of MVR 6.5 billion to the state budget, the state debt projects an increment of MVR 6 billion. The government will be concluding 2023 with a total national debt of MVR 120 billion.
Sign In