Maldives state registers a cumulative total loss of over MVR1 billion in state revenue for 2020.
According to Ministry of Finance, the cumulative total of revenue generated so far in 2020 was comparatively lower than the income generated in the corresponding period of 2019.
Maldives state earned a cumulative total of MVR4.597 billion as of 26 March 2020, which is an approximate total loss of MVR1.3 billion compared to the revenue earned in the same period last year.
The ministry reports the cumulative total of revenue earned in the review period last year reached MVR5.96 billion.
In the revenue earned to state in 2020, MVR3.943 billion came from tax revenue sources and the remaining MVR631.7 million were earned from non-tax revenue sources. In addition to this, state raised its revenue with MVR21.9 million in foreign grant and another MVR3.7 million from capital receipts.
All revenue components registered lower earnings compared to the same period in 2019.
In 2019, the cumulative total of tax revenue reached MVR4.376 billion while the non-tax revenue's cumulative total reached MVR1.169 billion as of the same period.
Additionally, the grants received to state during the review period in 2019 were observed at MVR439.7 million.
Maldives state budget recorded an overall balance at a deficit of MVR1.35 billion in year-to-date basis as of 26 March, while the total state budget is expected to incur a deficit of over MVR12 billion in 2020.
The soaring deficit figure is a direct result on the heavy economic impact due to the viral pandemic COVID-19, which has slowed down the gross productivity ratio of the island nation.
Moreover, the pandemic has rendered the strongest economic component of Maldives; the tourism sector, completely idle as no new tourist arrivals are observed with the global aviation industry hitting a limbo to curb the spread of the virus.
