Parliament of the Maldives has approved a State Budget of USD 2.27 billion for 2021.
The budget was approved during the parliament sitting held on November 30. The budget was passed with votes from 68 parliamentarians.
Ministry of Finance had initially proposed a budget of USD 2.25 billion for 2021. As per the initial budget report, state expenditure was projected to be USD 2.16 billion, with an additional USD 97 million added for debt repayment. Income was projected to be low next year, with USD 1.16 billion projected to be received as income and foreign grants. The budget deficit was stated as USD 1 billion, representing 23.4% of the Gross Domestic Product (GDP).
Following deliberations on the budget by parliamentarians, the Budget Committee of the Parliament brought some changes to the State Budget, resulting in a net increase of USD 13 million to the initial budget. As per the revised budget report, projected state income was increased from USD 1.16 billion to USD 1.36 billion in the revised budget. Meanwhile, USD 8.8 million was added for Public Sector Investment Programme (PSIP) projects, and an average of USD 100,000 was added to the budget of every state institution or office.
Most parliamentarians who deliberated on the revised budget endorsed the changes brought by the committee. Parliamentarians noted although the budget has a large deficit, it includes all the important expenses needed to fulfill the basic needs of the people and carry out important projects for long-term development. They expressed hope the budget will pave the way for economic recovery following the COVID-19 pandemic.
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.