Budget Aim
To achieve pledges of the “Jazeera Raajje” manifesto and the goals identified in the Strategic Action Plan.
Economic Outlook
This report highlights the macroeconomic situation in 2019 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 Policy Outlook
This report highlights the fiscal the budget position and prospects in light of the government fiscal policy. The report will look into the targets to be achieved from the budget, trends in expenditure and revenue in 2019 and the medium-term. The report will also underline the effect of fiscal policy on debt and deficit.
Public Sector Investment Program
This report highlights the developments of ongoing Public Sector Investment Programs (PSIP) planned and budgeted for in 2019. The report also looks into the new and ongoing PSIPs planned to be carried out in 2020.
Revenue and expenditure
Revenue
29,922
million
rufiyaa

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

It is estimated that the government would receive MVR 29.9 billion as revenue and grants in 2020, of which tax revenue constitutes the major item.

Expenditure
35,600
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).

The estimated budget for 2020 is MVR 37.5 billion, of which total expenditure is 35.6 billion. Total expenditure is calculated by deducting loan repayments and contribution to international financial institutions.

Deficit
5,678
million
rufiyaa

The overall budget balance is the difference between total revenues and grants, and expenditures. There will be a budget deficit if the total expenditures are higher than the total revenues and grants. The primary budget balance is the overall balance after deducting loan servicing costs.

The estimated budget balance for 2020 is a deficit of MVR 5.7 billion. The primary balance for this period is a deficit of MVR 3.8 billion. This deficit is financed through various financial instruments and by borrowing.

Expenditure details
Health
4,108
million
rufiyaa

The 2020 budget includes a total of MVR 4,107.8 million for the provision and expansion of healthcare services. From this budget, MVR 3,523.2 million is allocated for hospital services while MVR 584.7 million is allocated for general health services.

Economic Affairs
7,912
million
rufiyaa

The 2020 Budget includes a total of MVR 7,912.4 million on economic affair. Most of the expenditure in this sector (MVR 4,096.7 million) is allocated to economic, social and labour affairs.

Education
4,412
million
rufiyaa

The budget 2020 has allocated MVR 4,411.6 million for the education sector. MVR 1,140.8 million is allocated for tertiary education while the remaining MVR 3,270.8 million is allocated for education, not elsewhere classified.

Housing and Community Amenities
3,111
million
rufiyaa

MVR 3,110.7 million is allocated for housing and community amenities in the 2020 budget. Among this, the majority of expenditure (MVR 2,891.1 million) are on housing and community development.

Social Protection
3,991
million
rufiyaa

Expenditures on this function aim to promote equality within the society. From the budget allocated for this sector, MVR 1,371.6 million is allocated for sickness and disability, MVR 1,320.0 million for old age, and MVR 1,299.1 million for other expenditure for social protection.

Environmental Protection
1,798
million
rufiyaa

The 2020 budget allocates a total of MVR 1,798.0 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 the waste water management for which MVR 1,059.1 million is allocated for in the 2020 budget.

Defence, and Public Order and Safety
2,943
million
rufiyaa

The 2020 budget allocates a total of MVR 1,493.8 million on defence related expenditures. The majority of this is spent on military defence with a total of MVR 1,333.0 million.

The 2020 budget allocates MVR 9,942.5 million for public order and safety. The majority of the expenditure are on border control and public safety. This constitutes a total budget of MVR 1,808.2 million.

General Public Services and Recreation, Culture and Religion
7,737
million
rufiyaa

The 2020 budget allocates MVR 3,168.8 million on the provision of general public services. A total of MVR 2,998.2 million is allocated for executive and legislative organs, financial and fiscal affairs, and external affairs.

MVR 822.8 million is allocated for recreation, culture and religion in budget 2020. MVR 446.8 million is allocated towards recreation and sporting services while MVR 316.8 million is allocated to religious and other community services.

A total of MVR 3,727.4 million is allocated in the 2020 budget for debt services and amortisation. Of this, MVR 1,883.7 million is allocated for public debt transactions and MVR 1,843.7 million is allocated for interest payment and debt servicing.