The budget deficit last year was close to MVR 15 billion as no measures were taken to cut expenditure.
According to the latest weekly fiscal development report released by the Finance Ministry, the budget deficit stood at MVR 14.8 billion as of December 26. This is a record deficit compared to previous years.
The budget deficit is expected to be even higher with the actual expenditure figures at the end of the year.
The Finance Ministry estimates that the deficit will reach MVR 18.4 billion this year with the supplementary budget.
Budget deficit in previous years (actual figures except 2024)
- 2017 - MVR 2.7 billion
- 2018 - MVR 3.8 billion
- 2019 - MVR 5.7 billion
- 2020 - MVR 13.5 billion
- 2021 - MVR 11.4 billion
- 2022 - MVR 11.3 billion
- 2023 - MVR 13.5 billion
- 2024 - MVR 14.8 billion
Recurrent expenditure stood at MVR 33.9 billion while capital expenditure stood at MVR 14.6 billion. The bulk of recurrent expenses were incurred for administrative and operating expenses. The bulk of capital expenditures went to infrastructure.
Additional expenditures included MVR 4.5 billion to pay interest on debt and finance last year. The budget balance is MVR 4.2 billion.
Last year, revenue stood at MVR 33.6 billion. Tax revenue of MVR 25.5 billion accounted for the bulk of the increase. Non-tax revenue stood at MVR 7.5 billion and grants at MVR 658 million.
