Supplementary Budget Set to Increase Deficit to MVR 18.4 Billion

The introduction of the supplementary budget amounting to MVR 5.1 billion submitted to parliament today will elevate the budget deficit for 2024 to MVR 18.4 billion.

This revision brings the total budget for the year to MVR 55 billion, a significant increase from the originally approved state budget of MVR 49.5 billion, which had estimated a deficit of MVR 16.3 billion.

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As a consequence of this heightened deficit, the state debt is projected to reach 118 per cent of the total GDP by the end of the year. This year’s budget has seen over 70 per cent allocated to recurrent expenditure. With the supplementary budget, the total recurrent expenditure is set to rise to MVR 36.4 billion, while capital expenditure is projected at MVR 19 billion.

Notably, expenditure on land reclamation and construction is expected to increase to MVR 11 billion.

Additionally, funding for student loans is anticipated to reach MVR 1 billion, and MVR 2.1 billion will be allocated for state-owned enterprises.

The supplementary budget also incorporates foreign grant aid of MVR 1.4 billion and MVR 3 billion sourced from the domestic market, bringing the total expected revenue to MVR 36.3 billion.