Finance Minister presents 2020 state budget to Parliament

Finance Minister Ahmed Ameer has presented the state budget for the year 2020 to the Parliament today.

Minister Ameer stated that the total budget is MVR 37.50 billion and estimates that MVR 29.92 will be obtained through grants and aid.

The state income is consisted of:

• Tax income: MVR 17.85 billion
• Income from sources other than taxes: MVR 6.85 billion
• Grants and aid: MVR 5.22 million

The budget deficit for the next year will stand around MVR 5.68 billion and is expected to be covered through T-bills and T-bonds.

How does the government expect to finance the deficit?

• Loans for projects: MVR 3.04 billion
• Sale of bonds: MVR 4.63 billion
• T-bills and Bonds for internal markets: MVR 564 million

This is the first budget by the current government that is presented to the Parliament and was sent to the Parliament last Thursday. The budget for the year 2019, although formed with the recommendation and advise of President Solih’s administration, was presented by the previous administration of President Yameen.

The budget for 2019 stood at MVR 30 billion, however, a supplementary budget passed in August saw that figure rise to MVR 31.7 billion in total.