President Ibrahim Mohamed Solih has urged the Parliament of the Maldives to approve the State Budget proposed by the government for 2021. The president made the call in his remarks after inaugurating the newly developed airport in Hoarafushi, Haa Alifu Atoll.
Speaking at the ceremony, the president spoke in praise of the budget as fiscally responsible and crafted to help the government overcome the economic challenges of the COVID-19 pandemic. Acknowledging that these are challenging times, the president nevertheless emphasised that the government is committed to redoubling its efforts to deliver on its major pledges at this critical juncture.
The president emphasised that now is not the time to limit the scale of the government's ambitions and that it is keen on going ahead with projects that will directly enhance the quality of life for the people of the Maldives. Acknowledging concerns raised by some towards the Maldives' level of debt, the president further emphasised that despite the large debt inherited by this administration from the previous government, it will work with its dedicated and qualified financial teams to address budgetary issues, while investing in the Maldives' future.
The State Budget submitted by Ministry of Finance for 2021 amounts to USD 2.26 billion. Under the proposed budget the government plans to invest USD 260 million in the health sector, USD 253 million on education, USD 240 million on the social sector; as well as USD 150 million and USD 117 million on housing and infrastructure, and environmental protection, respectively.
Speaking at the budget presentation at the Parliament 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 parliament has concluded deliberations on the state budget on November 18.