Budget aim
Budget 2019 aims to begin efforts of the new government to provide the services to the people as promised in the manifesto. In this regard, this budget paves the way to reach “Jazeera Dhiriulhun” by solving the economic and social constraints faced in islands. Further, to achieve “Noo Iguthisaadu”, this budget would give additional support to enhance the benefits from economic activities in Maldives. As such the government shall continue its investments in infrastructure projects. In addition, the budget has prioritized enhancing quality of services given to the public.
Economic Outlook for Maldives
This report highlights the macroeconomic situation in 2018 and economic outlook for the medium-term. This report will look into the global and Maldivian economic prospects. The macroeconomic prospects for Maldives include the gross domestic product (GDP), inflation and the balance of payments of the economy.
Fiscal condition and outlook
This report highlights the current fiscal position and the goals and policies of the budget 2019. This report will look into the revised revenue and expenditure for the current year as well as the forecasted revenue and expenditure for the fiscal year 2019.
Public Sector Investment Program
The Public Sector Investment Program (PSIP) comprise of the infrastructure development projects and their implementation plans. The PSIP projects are aimed at mitigating the socio-economic issues faced by citizens, islands and the economy as a whole and increasing economic opportunity. The desired outcome of these projects are to pave the way to increase national productivity and facilitate economic and social development.
Revenue

Government revenue is classified under three main headings – tax revenue, non-tax revenue and grants.

It is estimated that the government would receive MVR 23.0 billion as revenue and grants in 2018, of which tax revenue constitutes the major item.

Tax revenue
TGST 31%
GGST 18%
Import duty 19%
BPT 13%
Others 10%
Green tax 5%
Tax revenue
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Expenditure

Government expenditure is made up of two main components; recurrent expenditure (expenditure incurred for the day-to-day running of the government and providing public services) and capital expenditure (expenditure on infrastructure projects and capital items such as machineries).

The estimated budget for 2019 is MVR 29.6 billion of which total expenditure is 26.7 billion. Of the total budget 62.1% is recurrent expenditure and 37.9% is capital expenditure.

Recurrent expenditure
Salary & Allowances 27%
Office 13%
Subsidy 10%
Pension 5%
Loans 10%
Recurrent expenditure
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Housing

The estimated budget for this function includes a total of MVR 1,609 in this year’s budget. This includes around MVR 321 Million for construction of housing units in L.Gan, Lh.Naifaru, B.Thulhaadhoo, M.Kolhufushi as well as a project of worth MVR 102 Million to provide housing for Police and Defense employees.

The budget allocates MVR 969 Million as recurrent expenditures for community programs. Of this, a total of MVR 634 is allocated for councils development.

Major Projects to be undertaken in this function for next year includes, MVR 63 million for construction of 3 buildings with multi storey parking facilities and MVR 42 Million for Male’ Redevelopment and development of Artificial Beach. Also includes a total of MVR 150 Million for establishment of water and sewerage in 36 islands.

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Education

The budget 2019 has allocated MVR 3,277 million for the education sector, of which, MVR 2,926 million is for recurrent and MVR 360 million for capital expenditure.

11% of the recurrent expenditure is for scholarships and training while 20% is for operational service. Breakfast for students will begin with the 2019 budget for which MVR 50 million has been allocated for the year.

Of the capital expenditure in this sector, MVR 86 million for school digitization project, MVR 39 million for establishing the medical school and MVR 84 million for expanding schools currently established in islands are notable.

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Economic Affairs

Allocation for economic affairs in the 2019 budget is MVR 5,278 million. This sector includes general economic, commercial and labour affairs, agriculture, forestry, fishing and hunting, fuel and energy, transport and communication. Major spending in this sector (85%) will be for capital expenditure while 15% is for recurrent expenditure.

Major investments in this sector include development of Velaana International Airport (MVR 1,658 million), MVR 895 million for harbor construction and MVR 375 million for harbor repairs and road construction.

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Health

Total spending for the health sector from the 2019 budget is estimated to be MVR 3,059 million. This constitutes of 84% recurrent expenditure and 16% capital expenditure.

21% of the recurrent expenditure for the health sector is allocated to medical consumables. Furthermore, notable projects carried out in this sector include development of Addu City Hithadhoo Regional Hopital (MVR 227 million), procurement of medical equipment for Dharumavantha Hospital (MVR 93 million) and expansion of health service centers already established in multiple islands.

Total spending for the health sector from the 2019 budget is estimated to be MVR 3,059 million. This constitutes of 84% recurrent expenditure and 16% capital expenditure.

21% of the recurrent expenditure for the health sector is allocated to medical consumables. Furthermore, notable projects carried out in this sector include development of Addu City Hithadhoo Regional Hopital (MVR 227 million), procurement of medical equipment for Dharumavantha Hospital (MVR 93 million) and expansion of health service centers already established in multiple islands.

Environmental Protection

Allocation for waste management is expected to be around MVR 231 Million. This includes MVR 140 Million for the installation of incinerator in K.Thilafushi, MVR 39 Million for Maldives Clean Environment Project and MVR 25 Million for establishment of waste management system in Addu and Fuvamulah.

Apart from this, the budget allocated MVR 1,153 for establishment of sewerage systems in 84 islands and a total of MVR 84 Million for coastal protection. Among this, includes MVR 60 Million for the island of Fuvahmulah.

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Social Protection

Spending allocated for social protection for 2019 is MVR 3,824 million. This includes a total of MVR 1,319 million for old age, MVR 1,293 million for people with special needs. Apart from this a total of MVR 1,000 is allocated for national health insurance scheme Aasandha.

Social protection also includes subsidies for government state owned enterprises to subsidize good provided for the public. As such, the budget allocates a total of MVR 1,089 million as subsidies. This includes; food, electricity, fuel as well as subsidy to waste Management Corporation.

Spending allocated for social protection for 2019 is MVR 3,824 million. This includes a total of MVR 1,319 million for old age, MVR 1,293 million for people with special needs. Apart from this a total of MVR 1,000 is allocated for national health insurance scheme Aasandha.

Social protection also includes subsidies for government state owned enterprises to subsidize good provided for the public. As such, the budget allocates a total of MVR 1,089 million as subsidies. This includes; food, electricity, fuel as well as subsidy to waste Management Corporation.

Others

The budget allocates MVR 3,730 for public order and safety. Among this includes MVR 152 Million as recurrent and MVR 3,579 Million as capital expenditure.

General public services includes around MVR 7,280 Million. This includes MVR 194 Million for construction of mosques and MVR 64 Million for sports infrastructure development.

Debt repayment is expected to be at MVR 2,888 and debt servicing at MVR 2,002.

Apart from this, the budget allocated MVR 1,153 for establishment of sewerage systems in 84 islands and a total of MVR 84 Million for coastal protection. Among this, includes MVR 60 Million for the island of Fuvahmulah.

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Geogrpahic distribution of projects in 2014-2018
Project carried out in Male’ city and over multiple islands have been excluded
Budget App
Budget app

This app provides the budget of the government Maldives for 2019 in a convenient digital format, with graphs, growth statistics and currency conversion options.

This app includes details of government revenue and expenditure, and in addition provides comprehensive details on the public sector investment programs for the medium term.

This app provides the budget of the government Maldives for 2019 in a convenient digital format, with graphs, growth statistics and currency conversion options.

This app includes details of government revenue and expenditure, and in addition provides comprehensive details on the public sector investment programs for the medium term.