Gov't proposes MVR 42.6 billion budget for 2023

The state budget for the year 2023 has officially been proposed to the People’s Majlis by Minister of Finance Ibrahim Ameer.

The proposed budget for 2023 is MVR 42.68 billion and is the biggest state budget recorded in recent history.

According to the proposal, the projected revenue including expected grants for 2023 in total is MVR 32 billion. Income through tax plays a major role in state revenue.

As such, Minister Ameer expects the government to receive MVR 23.54 billion as tax revenue and MVR six billion as non-tax revenue. Its anticipated that MVR 2.48 billion would be received in grants and other sources of revenue.

The total figure projected as tax revenue is 73.3 percent of the total figure anticipated to be revenue and grants.

The budget report submitted by the finance minister also anticipate MVR 3.79 billion would be received as import duty with MVR nine billion projected for TGST, MVR 4.4 billion in business and profit taxes as well as MVR 871 million as departure taxes.

The proposed state budget also projects that the state will receive MVR 4.2 billion as GST and MVR one billion as green tax revenue.

The total figure projected as non-tax revenue is 19.8 percent of the total revenue and grant figure.

The government also anticipates MVR 871 million to be received as a fee for airport development, with an interest and profit of MVR 1.35 billion.

Other sources of revenue include resort fees which amount to MVR 1.72 billion, a MVR 458 million fee for work permits for expatriate workers, MVR 778 million projected as registration and license fee and MVR 535 million as revenue fee.

MVR 613 million is projected to be received through other sources of revenue.

Although the projected state budget for 2023 is inclusive of loan repayments as well as contributions to the international financial institutions, it is not counted as expenditure.

Excluding loan repayments as well as contributions to the international financial institutions, the state budget is predicted to amount to MVR 40.55 billion.

As for expenditure, the biggest expenses have been allocated for recurrent expenditure, at MVR 28.6 billion.

Minister Ameer revealed that MVR 8.4 billion is expected to be spent for Public Sector Investment Programs (PSIPs) and MVR 5.6 billion for additional capital expenditure.

As for the main expenses in the budget, the biggest expenses will be for state employees, which has been projected at 26 percent. The report indicates that 11 percent has been allocated for office maintenance, five percent for loan repayment, four percent for budget contingency, one percent for conducting trainings, 20 percent for PSIPs and four percent for the allowances paid in pension.

The loan repayment component in the expenditure comprises of eight percent, with two percent of the expenses being for economic development and 15 percent for state grants and subsidies. Other sources of expenditure have been projected at four percent.

The projected state budget for 2023 has since been forwarded to the budget committee of the Majlis for further review.