The Budget Committee of the Parliament of the Maldives has revealed the committee’s report on the 2021 State Budget will be completed and submitted to the parliament floor on November 22.
Speaking on the ongoing proceedings on the state budget, Chair of the Budget Committee Mohamed Nashiz said the committee is currently working on incorporating the ideas and suggestions provided by parliamentarians during the budget deliberations. He said the committee will bring all necessary changes to the budget and submit it to the parliament floor by November 22.
The State Budget was presented to the parliament on November 9. 69 parliamentarians took part in the deliberations on the state budget, which concluded on November 18.
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.
As per the budget submitted by the Ministry of Finance, state expenditure is projected to be USD 2.16 billion next year, with an additional USD 97 million added for debt repayment. State income is projected to be low next year, with USD 1.16 billion projected to be received as income and foreign grants. Budget deficit is expected to be at USD 1 billion, representing 23.4% of the Gross Domestic Product (GDP).
President Ibrahim Mohamed Solih had earlier spoken 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.