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.
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.