Government Faces Budget Deficit of MVR3 Billion

Thursday 28th of May 2020

Government Faces Budget Deficit of MVR3 Billion

As per the Finance Ministry’s Weekly Fiscal Development, the state’s cumulative expenditure has reached MVR9, 342.9 million (MVR9.3 billion) as of 21st May. This is an MVR53.2 million increase compared to the same period in 2019.

While the expenditure drastically increased, the state revenue has only reached MVR6, 057.8 million, an MVR 3,261.8 million annual decrease. This leads to a deficit of MVR3, 285.1 million in the overall balance for the review period. Revenue composition confirm 83% of revenue through tax sources and 17% through non-tax sources.

At the end of 21st May 2020, the total spending towards COVID-19 efforts stood at MVR 866.9 million, a 0.7 percent decrease from the week before. As spending figures include committed-spending, this decrease is primarily due to the cancellation of a medical equipment order by NDMA. Despite this, NDMA and MoH continue to be the frontline agencies spending towards COVID19 efforts.