State proposes MVR 42.6 billion budget for 2023

The Maldivian government has proposed an estimated budget of MVR 42.6 billion for the year 2023.

The proposed state expenditure without repayment of loans totals MVR 40.6 billion. This includes MVR 28.6 billion as recurrent expenditure and MVR 14.1 billion as capital expenditure.

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The difference of MVR 2.1 billion is budgeted to pay off state debts.

The budget further includes MVR 12.9 billion on salaries and pensions. Recurrent expenditures such as procurement of goods and services, transportation, and repairs are estimated at MVR 5.6 billion while subsidies and assistance are estimated at MVR 6.6 billion.

In terms of capital expenditure, the largest expenditure will be on the public sector investment program with MVR 8.4 billion budgeted for development projects.

The budget projects that the government will receive MVR 32.1 billion in revenue and grants next year.

The budget deficit is expected to be lowered to MVR 8.5 billion, which is 8.1 percent of the GDP. The primary deficit of the budget is MVR 5 billion. This is 4.8 percent of the GDP as per the fiscal strategy target.

While submitting the proposed budget, Finance Minister Ibrahim Ameer stated that approximately MVR 11.5 billion will need to be secured to finance next year’s budget.