Finance Minister Ibrahim Ameer has presented a proposed state budget of MVR 34.8 billion for the year 2021 to the parliament today.
Speaking while presenting the budget, Minister Ameer said that the state budget included an expenditure of MVR 33.3 billion and that MVR 1.5 billion would be spent on paying back sovereign debts.
Ameer said the economic difficulties that presented itself this year would continue next year and projected that the state would receive MVR 17.8 billion in income and free aid.
He said that although the budget proposed for next year is smaller than that of this year the drop in income would in turn increase the budget deficit. Minister Ameer said that the projected deficit for next year is MVR 15.5 billion and that this is 23.4 percent of the GDP.
The Minister urged parliamentarians to approve the proposed budget and hoped that the parliament would offer its support in rebuilding the country’s economy in order to achieve the developmental goals set by the government during its tenure.
He went onto say that the budget is being proposed as the country and world still grapples with the COVID-19 pandemic and the devastating effects it has brought on the global economy.
Minister Ameer noted that with the COVID-19 pandemic and the subsequent restrictive measures the country had taken, its economy had taken a substantial hit as the economy fell by 29.3 percent.
He added that the 2021 Budget is structured in a way that would allow the country to swiftly recover from the economic and social damages sustained amid the pandemic.
