Projected State budget for 2017 a surplus of MVR 1.1 bn

The projected State budget for 2017 submitted by the government to the People’s Majlis is a surplus MVR 1.1 billion budget – bringing an end to years of projected deficit State budgets.

The State budget for 2015 was a deficit of MVR 4.1 billion, and the budget deficit for 2016 is expected to reach MVR 4.3 billion.

Minister of Finance and Treasury, Ahmed Munawwar submitted the projected State budget of MVR 26 billion to People’s Majlis during this Tuesday’s sitting.

51 percent of the projected budget – MVR 14 billion is recurrent expenditure, and 49 percent is capital expenditure.

61 percent of the recurrent expenditure will go to payment of salaries, allowances and pensions; 16 percent will go to management, maintenance and repair work on offices, and 9 percent will go to State aid and subsidies.

Minister Munawwar said that the budget was designed to support the government’s economic policies, and balance the State’s income and expenditure.

Its expected the reserve amount by end of 2016 will be USD 630 million, and USD 605 million by end of 2017.

State debt is expected to rise to MVR 36.9 billion by end of 2016 – 28 percent of which is owed to international financiers.