State budget 2023: expected state expenditure is MVR 40.6 billion

Ministry of Finance has disclosed that the expected state expenditure for 2023 is MVR 40.6 billion.

Minister of Finance Ibrahim Ameer on Monday proposed the state budget for 2023 to the People’s Majlis.

While the proposed budget for 2023 is the biggest state budget recorded in recent history, it is projected that the state expenditure will be less than that of 2022.

As such, the Finance Ministry notes that the state expenditure for 2023 is expected to be 0.4 percent less than that of 2022.

It is projected that 67 percent of the state expenditure for 2023 will be recurrent expenditure and 33 percent will be capital expenditure.

It is estimated that the biggest amount will be spent on salaries, wages and pension of staff, subsidies and operational expenses. As such, it is projected that the expense of staff salaries, wages and pension will see an increase of 17.58 percent compared to 2022.

This is due to the administration's pay harmonization scheme which brought changes to the salary structure of the Education and Health Sector. It is also noted that the Health Sector will see additional 1,000 staff employed during the next year. Hence, the expenses of staff is projected to increase.

The proposed budget for 2023 estimates that the state will be spending MVR 1.9 billion on pension of staff. This is a 6.5 percent increase compared to 2022.

It is also estimated that the recurrent expenditure of 2023 will be increased to MVR 610.9 million from MVR 475.5 million of 2022.

MVR 8.4 billion is projected to be spent on Public Sector Investment Programs (PSIPs).

Additionally, 1.8 percent of the total budget for 2023 will be spent to repay the debts.

Moreover, the Education Sector is allocated 10.8 percent of the proposed budget for 2023, and the Health Sector is allocated 11.8 percent of the proposed budget.

The proposed state budget for 2023 is MVR 42.68 billion.