Projected State Budget for 2014 is MVR 16.5 billion

The Ministry of Finance and Treasury has said that the projected State Budget for 2014 is MVR 16.5 billion.

A senior official of the ministry said that the MVR 16.5 billion was passed by the cabinet yesterday.

He said that the total projected revenue for next year is MVR 11 billion, which leaves the government with a deficit of MVR 5.5 billion.

The cabinet discussed the State Budget for 2014 at its meeting yesterday.

Members stressed at the meeting, that the uncontrolled expansion of budget deficit over the years has led to major external imbalance. Members also spoke on the importance of finding additional means of income, noting the rise of State expenses in the recent years.

For 2013, the government proposed a budget of MVR 16.9 billion, but the parliament cut down the figure to MVR 15.2 billion before passing the budget, resulting in several measures having to be taken to reduce government expenses.

Finance Minister Jihad said recently that due to the failure to pass several projects proposed in the budget for 2013 to generate income, the deficit is likely to be higher than projected.

Finance Ministry said that the State Budget for 2014 will be present in the parliament on 30 October.