Budget Aim
The National Budget 2021 is planned and set to be in accordance with the implementation of the “National Resilience and Recovery Plan 2020-2022” formulated to highlight policy priorities in order to recover from the effects of Covid-19.
Economic Outlook
This report highlights the Macroeconomic Developments in 2020 and the Outlook for the medium-term. It will look into the global and Maldivian economy in 2020 and the medium-term prospects. The Macroeconomic prospects for Maldives include the GDP, Inflation and the Balance of Payments of the economy.
Fiscal Policy Outlook
This statement highlights the fiscal position and prospects in light of the government fiscal policy. The report will look into the outcomes expected from the Budget, trends in expenditure and revenue in 2020 and the medium-term. The report will also highlight the effect of fiscal policy on debt and deficit in 2021.
Public Sector Investment Program
This report highlights the developments of ongoing Public Sector Investment Programs (PSIP) planned and budgeted for in 2020. The report also looks into the new and ongoing PSIPs planned to be carried out in 2021.
Revenue and expenditure
Revenue
17,792
million
rufiyaa

Government Revenue consists of Tax Revenue, Non-Tax Revenue and Grants.

It is estimated that the government would receive MVR 17.8 billion as Revenue and Grants in 2021, of which tax revenue constitutes the major item.

Expenditure
33,297
million
rufiyaa

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 machinery and equipment).

The proposed Total Expenditure budget for 2021 is MVR 33.3 billion, which adds up to a Total Budget of MVR 34.8. Total expenditure is calculated by deducting loan repayments and contribution to international financial institutions from the total budget.

Deficit
15,504
million
rufiyaa

The overall budget balance is the difference between Total Revenues and Grants, and Total Expenditures. The Budget Deficit is due to higher Total Expenditures compared to Total Revenues and Grants. The Primary Budget Balance is the Overall Balance after deducting loan servicing costs.

The estimated budget balance for 2021 is a deficit of MVR 15.5 billion. The primary balance for this period is a deficit of MVR 12.9 billion. This deficit is financed through various financial instruments such as bonds, sukuk and Treasury Bills and by borrowing.

Expenditure details
Health
4,040
million
rufiyaa

The 2021 budget includes a total of MVR 4,040.3 million for the provision and expansion of healthcare services. From this budget, MVR 3,274.7 million is allocated for hospital services while MVR 765.6 million is allocated for general health services.

Economic Affairs
6,997
million
rufiyaa

The 2021 budget includes a total of MVR 6,997.0 million on economic affairs. Most of the expenditure in this sector (MVR 3,724.0 million) is allocated for economic diversification, labor affairs and the development of the private sector.

Education
3,953
million
rufiyaa

The budget 2021 has allocated MVR 3952.5 million for the education sector. MVR 914.4 million is allocated for tertiary education while the remaining MVR 3,038.1 million is allocated for other levels of education.

Housing and Community Amenities
2,337
million
rufiyaa

MVR 2,337.0 million is allocated for housing and community amenities in the 2021 budget. Among this, the majority of expenditure (MVR 2,194.0 million) are on housing and community development.

Social Protection
3,700
million
rufiyaa

Expenditures on this function aim to promote equality within the society. From the budget allocated for this sector, MVR 1,169.6 million is allocated for sickness and disability allowances, MVR 1,340.0 million for pensions, and MVR 1,190.4 million for other expenditure for social protection. The 2021 budget has allocated a total of MVR 3,700 million for this sector.

Environmental Protection
1,850
million
rufiyaa

The 2021 budget allocates a total of MVR 1,850.4 million on environmental protection. Expenditure on this function includes waste management, waste water management, pollution abatement, protection of biodiversity and landscape, among others. The largest component, among this, is sanitation in islands for which MVR 1,149.0 million is allocated for in the 2020 budget.

Defence, and Public Order and Safety
1,431
million
rufiyaa

The 2021 budget allocates a total of MVR 1,431.3 million on defense related expenditures. The majority of this is spent on military defense with a total of MVR 1,272.4 million.

The 2021 budget allocates MVR 2,786.0 million for public order and safety. Most of the expenditure are on border control and public safety. This constitutes a total budget of MVR 1,668.7 million.

General Public Services and Recreation, Culture and Religion
6,924
million
rufiyaa

The 2021 budget allocates MVR 2,891.9 million on the provision of general public services. A total of MVR 2,738.1 million is allocated for executive and legislative organs, financial and fiscal affairs, and external affairs, while MVR 153.8 million is allocated for general public services.

MVR 768.9 million is allocated for recreation, culture and religion in budget 2021. MVR 454.6 million is allocated towards recreation and sporting services while MVR 268.0 million is allocated to religious and other community services.

A total of MVR 4,032.3 million is allocated in the 2021 budget for debt services and amortization. Of this, MVR 1,469.9 million is allocated for loan repayments and MVR 2562.4 million is allocated for interest payment and debt servicing.

Ministry of Finance
Ameenee Magu, Block 379, Male'
Republic of Maldives

Tel: 1617
Tel: +(960) 334 9200
Fax: +(960) 333 8034

E-mail: [email protected]