The government of Maldives has proposed a state budget worth over USD 1.8 billion for 2018. Minister of Finance Ahmed Munawwar presented the state budget for 2018 to the Parliament of Maldives.
Addressing the Parliament, Finance Minister Ahmed Munawwar stated that the budget for 2018 was drafted with regard to fulfilling the hopes of people. Finance Minister Munawwar highlighted that the budget strictly aims to enhance the services provided to the people of Maldives. The state budget paves way to prioritise and complete developmental projects to deliver results, added Finance Minister.
It is expected that the total expenditure of the state will be 1.6 billion U.S. dollars. The Maldivian government forecast a revenue of USD 1.4 billion for 2018, which is an increase of 8%, compared to the revenue forecast for this year.
With USD 2.7 billion spent on repayment of debts and loans, the government estimates that the state deficit would decrease in 2018. The budget drafted by Ministry of Finance and Treasury notes that GDP would see an increase of 3.2% in 2018.
Furthermore, 57% of the budget, which is roughly USD 1 billion, would be recurrent expenditure, with the majority of recurrent expenditure to be spent on salaries and pensions.
USD 772.3 million would be capital expenditure, which is 43% of the 2018 state budget. Majority of capital expenditure will be on developmental projects. With the state expenditure on infrastructure development, it has become the fastest developing sector in the past three years.
In addition, inflation rate is expected to stand at 3.1% which is a decrease of 0.3% compared to this year. The Maldivian Finance Minister stated that economic growth rate is expected to stand at 6% in 2018. The state reserve is expected to cap at USD 480 million by the end of 2017, and is expected to rise to approximately USD 600 million in 2018.