The Parliament of the Maldives has concluded deliberations on the State Budget proposed by the government for the year 2021.
The State Budget submitted by Ministry of Finance for 2021 amounts to USD 2.26 billion. The budget was presented to the parliament on November 9.
69 parliamentarians took part in the budget deliberations. A total of 15 hours and 43 minutes were spent on the deliberations.
Most parliamentarians who spoke during the deliberations noted the budget includes several important projects to revive the economy following the COVID-19 pandemic. However, several parliamentarians also expressed concern over the increase in state debt.
Speaking at the budget presentation on November 9, Minister of Finance Ibrahim Ameer said state expenditure is projected to be USD 2.16 billion next year, with an additional USD 97 million added for debt repayment. The minister noted income is projected to be low next year, with USD 1.16 billion projected to be received as income and foreign grants. He added the budget deficit is expected to be at USD 1 billion, representing 23.4% of the Gross Domestic Product (GDP).
The finance minister stated the budget was prepared based on the priority areas highlighted in the National Resilience and Recovery Plan, which was prepared by the National Taskforce on Resilience and Recovery following the COVID-19 pandemic. The minister noted high-level discussions were held among working groups of the taskforce, with consultation of stakeholders from a wide range of sectors.