The proposed government budget for 2021 has been submitted for review to the Parliament yesterday.
According to the Ministry of Finance, the proposed 2021 budget has now been submitted, the details of which will be revealed during the Budget Statement delivered by the Minister of Finance, Ibrahim Ameer.
To our knowledge, the budget for next year is set at about MVR 35 billion. This figure is MVR 3 billion less than the budget for this year.
The budget for 2020 was set at MVR 37.8 billion. However, considering recessionary effects from the COVID-19 pandemic, the budget has had to be revised to reflect the monumental loss of government income.
The World Bank has advised the Maldives to decrease government spending. This is because of high government debt, which now stands at MVR 170 billion according to a recent report passed in the Parliament.
Meanwhile, capital spending in the Maldives has increased by more than 16%, due to ongoing large-scale infrastructure projects.