State submits projected budget of MVR 27.9B for 2018

Minister of Finance, Ahmed Munawwar has presented a projected State budget of MVR 27.9 billion for the year 2018 to the People’s Majlis.

Munawwar said the State projected it will receive MVR 22.4 billion as income and foreign aid. And that the State’s projected expenditure is MVR 24.9 billion.

The budget deficit is MVR 2.5 billion.

The State has budgeted MVR 7.1 billion for infrastructure development projects in 2018.

The minister said the State forecasted a 6 percent economic growth rate for 2018, and an inflation rate of three percent.

43 percent of the budget is for capital expenditure. The other 57 percent (MVR 16.1 billion) is for recurrent expenditure. The bulk of the recurrent expenditure is for salaries and pensions.

Major projects budgeted for 2018 include construction of Dharumavantha Hospital and construction of four airports.

MVR 154 million has been budgeted for the education sector expenses and MVR 210 million for higher education.

Presenting the budget to the People’s Majlis this Wednesday, Munawwar said the country’s reserve will increase to USD 500 million at the end of this year, but the national debt will also increase - to MVR 43 billion.