Maldives' expected revenue for 2020 to be decreased by USD one billion

The state’s expected revenue for the year will be decreased by approximately USD one billion, says President Ibrahim Mohamed Solih.

President Solih made the statement during his remarks at the inaugural meeting of the National Taskforce on Resilience Building and Economic Recovery, held on Wednesday.

Reiterating that the fundamental purpose of constituting the taskforce “is to help the Maldives emerge from the Covid-19 crisis a more resilient country”, President Solih noted the strides the Maldives has made, “in terms of increasing its healthcare capacity and resources to combat the virus”.

He also welcomed how quickly the country was able to reach a stage in which it can safely consider reopening borders.

While the president also expressed optimism that the country “is now well-positioned to begin a strong economic recovery” he also acknowledged the many difficulties businesses and individuals have endured due to the pandemic.

Further noting that the state’s expected revenue is being decreased by approximately USD one billion this year, the president stated that “it is imperative that the budget is revised”, adding that the relevant stakeholders must research and propose means of increasing state income.

During the meeting, three subgroups within the taskforce -the working group on finance, the working group on economic recovery and the working group on the social sector- gave presentations relevant to their specific work. Each group is to have elaborated upon the strategies they have devised and the work they are already doing to help the country make up its budgetary shortfalls, revive its economic activity and ensure that the health and social sectors are well-equipped to deal with future challenges.

The groups collectively outlined what a ‘new normal’ could entail as the country eases temporary restrictive measures, allows business activity to resume and prepares to reopen schools, in response to the continuing daily decrease of active COVID-19 cases.

Additionally, the tourism ministry shared guidelines regarding how to safely restart the country’s the industry.

The meeting concluded with the taskforce noting that the decisions regarding the suggestions presented by the working groups and the guidelines presented by the Ministry of Tourism, will be announced at the next meeting.

National Taskforce on Resilience Building and Economic Recovery was established on May 7, and its key mandate is to formulate strategies, in close coordination with and advice from relevant stakeholders, to revive the Maldives’ economy, boost economic growth, and relieve and realign the social sector to face new challenges.