The Ministry of Finance is to submit a state budget projected at MVR 35 billion for 2021.

Chief Financial Budget Executive at the Ministry Ahmed Saruvash Adam told local media outlets that the 2021 state budget is estimated to reach MVR 35 billion, which is MVR 4.6 billion less than the amount projected for this year’s budget.

Under law, the ministry is required to submit the state budget for the upcoming year by October 31, for approval from the People’s Majlis.

The People’s Majlis had approved a state budget of MVR 37.8 billion for the ongoing year, out of the initially proposed MVR 37.5 billion. The Budget Committee added MVR 366 million to the projected budget, which brought the deficit up to 6.2 percent from 5.8 percent of GDP.

Due to the ongoing Covid-19 pandemic, the government’s revenues and expenditure were drastically affected which caused a MVR 15 billion shortage in the state budget for the ongoing year.