State revenue behind projections, says Finance Minister

Revenue earned by the State is behind projected numbers, Minister of Finance and Treasury Abdulla Jihad has said.

Speaking at a meeting with the councils today, Jihad said that it is difficult to manage a budget with a large deficit, and that the ministry faces difficulties in cash flow.

“If there is no money in the State budget when we have to pay salaries, what will we do then? Our biggest priority is to give out the salary,” said the Finance Minister.

He also noted the importance of political stability to increase State revenue, and appealed to all parties to prioritize stability in the country.

The central bank, Maldives Monetary Authority (MMA) has said that budget deficit will stand at MVR 92,196 per head by the end of the year. The total budget deficit is also projected at MVR 31.5 billion by the end of 2014, according MMA.

The MVR 16.4 billion budget proposed for 2014 by former president Dr Mohamed Waheed Hassan Manik’s government was revised by the current government and increased to MVR 17.5 billion. The Parliament approved a final budget of MVR 17.9 billion for 2014.