The Finance Ministry has outlined its budget projections for the upcoming year, shedding light on the anticipated income and expenditure for 2024.
Income Projections
In 2024, the Maldives foresees an increase in income from MVR 32.5 billion in 2023 to MVR 33.5 billion. This could attributed to Tax Revenue, accounting for 76% and is estimated at MVR 25.6 billion. Non-tax sources will significantly contribute 20%, totalling MVR 6.7 billion. Aid is expected to make up 4% of the projected income, with MVR 1.3 billion designated for this purpose.
Main Income Source Projection
The Maldivian economy relies heavily on the tourism sector, with key income sources, including Tourism Goods and Service Tax (TGST), projected to contribute MVR 9 billion, making it the primary income generator. Business and Property Tax is expected to add MVR 5.5 billion to the income, while General Goods and Service Tax anticipates an income of MVR 4.7 billion. Import Duty is estimated to bring in MVR 4 billion, and income from Resort Rent is projected at MVR 2 billion.
Expenditure Projections
In 2024, the Maldivian government has budgeted MVR 49.6 billion, a slight increase from the previous year’s MVR 49.4 billion.
The allocation breakdown for 2024 is notable for its strategic resource distribution, with 70% of the budget, equivalent to MVR 34.8 billion, earmarked for recurrent expenses. A significant portion, 17% of the budget, or MVR 8.7 billion, is allocated to the Public Sector Investment Programme (PSIP), underlining a commitment to infrastructure and development. Additionally, 12% of the budget, equivalent to MVR 6.1 billion, is set aside for other capital expenditures. These allocations provide insights into the government’s fiscal priorities for the forthcoming year.
The upcoming year will witness continued reliance on the tourism sector while investing in infrastructure and development. These financial decisions are poised to shape the economic landscape of the Maldives in the near future.
