Finance Ministry Reveals Report on Medium Term Fiscal Strategy 2022-2024

The Ministry of Finance has submitted the Medium Term Fiscal Strategy 2022-2024 to the Public Accounts Committee of the People’s Majlis.

The Medium-Term Fiscal Strategy 2022-2024 focuses on recovering from the economic and fiscal impact of the Covid-19 pandemic and establishing a sustainable fiscal policy for the medium-term. The government annual budget for the year 2022 and the medium-term will be formulated based on the outlined strategy.

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According to the Ministry, the statement was prepared with the goals of supporting the recovery from the socioeconomic impact of the Covid-19 crisis, to maintain the quality of public services and to support the reorientation of the economy towards a more resilient economy. The measures outlined in the strategy aims to reduce expenditure in the medium-term, create fiscal space to increase essential spending, bring economic diversification to enhance resilience, and enhance social wellbeing of the citizens.

As Covid-19 crisis has caused the financing gap and public debt to expand in the past two years, the strategy targets to reduce the budget deficit in the medium-term to bring debt to more sustainable levels.

The report estimates that total government budget for 2022 – including baseline budget, expenditure on New Policy Initiatives and allocation for council grants – will be MVR 37,040.2 million. This is a 0.3 percent increase from the estimate for 2022 in the 2021 budget.

To view the full report, visit this link.

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