MVR 1B left in state budget for recurrent expenses for remainder of the year

Finance Minister Ibrahim Ameer. (Sun Photo/Fayaz Moosa)

The remainder in the state budget to cover recurrent expenses for the rest of the year has been reduced to MVR 1 billion.

Weekly statistics publicized by Finance Ministry show that MVR 23.7 billion has been spent on recurrent expenses this year, as of November 17 – just short of the MVR 24.8 billion approved by the parliament.

Whilst budget for recurrent expenses has been reduced to MVR 1 billion – there is one more month left in the year.

Recurrent expenses this year mainly comprised of salary, allowances and pension. In this regard, MVR 9.2 billion from the approved MVR 11.4 billion for the purpose has been exhausted as of November 17.

So far this year, MVR 32.2 billion has been exhausted for recurrent and capital expenses.

Meanwhile, MVR 6.4 million has been spent on PSIP projects.

State revenue as of November 17 stands at MVR 23.7 billion. This is MVR 24.3 billion lower than the projected revenue.

Tax contributes the majority of state revenue – 72 percent.

The government projects to receive approximately MVR 3 billion in grant assistance this year. However, only MVR 322.4 million was received.