Finance Ministry Revises 2024 Revenue Forecast, Adding MVR 640.1 Million

The Finance Ministry has revised its revenue projections for 2024, estimating an additional MVR 640.1 million in revenue. 

This revision brings the total projected income for the year to MVR 34.2 billion, up from the previous estimate of MVR 33 billion. Finance Minister Moosa Zameer presented a supplementary budget proposal to Parliament, amounting to MVR 5.1 billion. If approved, this will increase the total state budget for 2024 to MVR 55 billion, up from the originally passed MVR 49.8 billion.

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According to the Finance Ministry, the state had collected MVR 26.9 billion in revenue and grants by 30th September. The revised figures include an anticipated MVR 61.6 million increase in tax revenue, an additional MVR 379.2 million in non-tax revenue, and MVR 199.3 million in grants.

The Ministry has clarified that the supplementary budget request is not a result of exhausting the allocated 2024 budget. As of 30th September, government spending stood at MVR 37.4 billion, representing 76% of the total budget.

With the proposed supplementary budget, the projected budget deficit will rise to MVR 18 billion, equating to 16% of the GDP. The debt-to-GDP ratio is now expected to reach 118% by the end of the year. Despite the significant increase in the deficit, the supplementary budget is notably lower than the previously estimated MVR 10 billion.

The revised projections are set against the backdrop of a planned tax hike and other fiscal measures aimed at bolstering state revenue.

Finance Ministry Clarifies Budget Status Amid Opposition Criticism

The Ministry of Finance has refuted claims that the government has exhausted the 2024 budget, explaining that the proposed supplementary budget is aimed at addressing the state budget deficit, rather than a complete depletion of funds.

The Ministry confirmed that, while a supplementary budget of MVR 5.1 billion has been submitted, the original MVR 49.8 billion budget for the year has not been fully utilised.

The clarification follows accusations from the opposition that the government has completely run out of funds for 2024. However, the Ministry reported that as of 30 September, MVR 37.4 billion had been spent, equating to 76% of the budgeted amount.

Finance Minister Moosa Zameer presented a supplementary budget of MVR 5,119,508,129 to Parliament today. If approved, this will increase the total budget for 2024 to MVR 55 billion.

The supplementary budget includes an additional MVR 1.5 billion for recurrent expenditure. Addressing Parliament, Zameer highlighted that the original allocations for the Public Sector Investment Programme (PSIP) were unrealistic, necessitating an additional MVR 2 billion to cover project costs.

The Finance Ministry projects that the state will receive an extra MVR 640 million in revenue and grants, including MVR 61 million from tax revenue, MVR 379 million from non-tax revenue, and MVR 199 million from grants.

Notably, the proposed MVR 5.1 billion supplementary budget is lower than the earlier estimate of MVR 10 billion.