Ministry of Finance has disclosed that the direct debt of the state is expected to increase by 9.2 percent in 2023.

The proposed state budget for 2023, which was submitted to the People's Majlis on Monday shows that the state debt which is at 98 percent of the GDP in 2022 is estimated to decrease to 97.7 percent in 2023.

Highlighting that the GDP is growing exponentially well, Ministry of Finance notes that the administration is working on a medium term revenue strategy.

Finance Ministry notes that the overall budget deficit of the 2023 state budget is projected to be at MVR 8.5 billion. This is 8.1 percent of the GDP. The primary deficit is projected to be at MVR five billion, which is 4.8 percent of the GDP.

The proposed state budget for 2023 highlights that MVR 11.5 billion will be needed as financing. This includes MVR 8.5 billion needed to cover up the budget deficit and MVR 2.1 million needed for loan repayment as well as MVR 871.4 million to transfer to the Sovereign Development Fund.

Finance Ministry disclosed that the strategy is to gain 65.3 percent of the financing externally. As such, the administration's plan includes selling a MVR 771 million green or blue bond to the international market and gaining MVR 1.5 billion as concessional budget loan.

Additionally, the state will be selling treasury bills and bonds to the Maldivian market to gain MVR 4.7 billion as financing.

Ministry of Finance highlights that 38.5 percent of the total financing is already guaranteed.