The state budget 2022 was officially proposed to the People’s Majlis by Minister of Finance Ibrahim Ameer, on Sunday.

The proposed budget for 2022 is MVR 36.9 billion.

According to the proposal, the projected expenditure in total, inclusive of loan repayments as well as constitutions to the international financial institutions is set at MVR 36,925,424,524.

Inclusive of revenue and grants, the projected revenue in total is MVR 24.3 billion, meaning that an 11.1 percent of GDP deficit of MVR 9.7 million is predicted.

In order to finance the state budget 2022, MVR 13.4 billion is required in total including MVR 9.7 billion in deficit, MVR 2.9 billion in loan repayment as well as the MVR 769.2 million for sovereign development fund transfers and MVR 35.7 million for other purposes.

Highlighting that although the country’s economy had fallen into a dismal abyss due to the Covid-19 pandemic, it has begun to bounce back throughout 2021. These positive changes are expected to impact the budget as well.

Minister Ameer expects the government to receive a total of MVR 24.3 billion as revenue and grants in 2022, including 15.4 billion as tax revenue and MVR six billion as non-tax revenue. MVR 2.9 billion has been anticipated to be received in grants and other sources of revenue.

Ameer added that the state budget 2022 was compiled in accordance with the electoral pledges of the administration of President Ibrahim Mohamed Solih. The proposed budget will also pave way for the enhancement of basic services provided by the state and decentralization. As such, 90 percent of budget has been allocated for schemes and projects promised by the administration, for regional development.

Currently, the work for 497 projects is ongoing, with 671 projects concluded already.