Ahmed Munawar, the Minister of Finance and Treasury, has declared that there is no rooom to further increase the state budget for 2019.

Speaking at the budget review committee sitting on Thursday, Minister Munawar stated that if the budget is to be expanded, there will be a likelihood of state debt increasing over 60%.

Munawar stated that if the state deficit is not maintained at five percent, it will heavily affect the country’s economy.

“If the deficit reaches above five percent or to a double digit, debts will skyrocket. Especially if foreign debt increases, it will be difficult to manage debts” said Munawar.

The state is currently indebted by MVR 48 billion, out of which 21 billion is foreign debt.

The Minister further asserted that the incoming government of President-elect Ibrahim Mohamed Solih needs to assemble new sustainable policies to manage debt as Maldives is a country with high debts.

Stating that the state debt has not been reached within five years, Minister Munawar said that state debt has been rising since the previous administration.

Munawar further stated there has been a rise in debt due to inability to manage previous debts as well as state assets not being valued.

Munawar went on to say that these debts 'can be reduced'.