The Minister of Finance Ibrahim Ameer presents the proposed budget for 2021 at the Parliament on Monday.
The proposed budget for 2021 is MVR 34.8 billion of which total expenditure is MVR 33.3 billion. The budget consists of 62.3% as recurrent expenditure and 37.7% as capital expenditure. It is estimated that the government would receive MVR 17.8 billion as revenue and grants in 2020, of which the majority is from tax revenue. The proposed budget deficit for 2021 is 15.5 billion and this is 23.4% of GDP.
During the budget presentation at the People’s Majlis, the Minister explained the important areas of the budget, income sources, and information regarding debt. The total projected income and free financial assistance that the government will get in 2021 are estimated at MVR17.8 billion.
Minister Ameer also stated that the 2021 budget has emphasized the economic diversification of the country.
As presented at the Parliament, the budget expenditure includes:
1. A total of MVR 4,040.3 million for the provision and expansion of healthcare services. From this budget, MVR 3,274.7 million is allocated for hospital services while MVR 765.6 million is allocated for general health services.
2. A total of MVR 6,997.0 million on economic affairs. Most of the expenditure in this sector (MVR 3,724.0 million) is allocated to economic, social, and labor affairs.
3. The budget 2021 has allocated MVR 3952.5 million for the education sector. MVR 914.4 million is allocated for tertiary education while the remaining MVR 3,038.1 million is allocated for education, not elsewhere classified.
4. MVR 2,337.0 million is allocated for housing and community amenities in the 2021 budget. Among this, the majority of expenditure (MVR 2,194.0 million) is on housing and community development.
5. Expenditures on this function aim to promote equality within society. From the budget allocated for this sector, MVR 1,169.6 million is allocated for sickness and disability, MVR 1,340.0 million for old age, and MVR 1,190.4 / 941.3 million for other expenditures for social protection. The 2021 budget has allocated a total of MVR 3,700 million for this sector.
6. The 2021 budget allocates a total of MVR 1,850.4 million for environmental protection. Expenditure on this function includes waste management, wastewater management, pollution abatement, protection of biodiversity and landscape, among others. The largest component, among this, is wastewater management for which MVR 1,149.0 million is allocated in the 2020 budget.
7. The 2021 budget allocates a total of MVR 1,431.3 million on defense-related expenditures. The majority of this is spent on military defense with a total of MVR 1,272.4 million. The 2021 budget allocates MVR 2,786.0 million for public order and safety. Most of the expenditure is on border control and public safety. This constitutes a total budget of MVR 1,668.7 million.
8. The 2021 budget allocates MVR 2,891.9 million for the provision of general public services. A total of MVR 2,738.1 million is allocated for executive and legislative organs, financial and fiscal affairs, and external affairs, while MVR 153.8 million is allocated for general public services. MVR 768.9 million is allocated for recreation, culture, and religion in the budget 2021. MVR 454.6 million is allocated towards recreation and sporting services while MVR 268.0 million is allocated to religious and other community services. A total of MVR 4,032.3 million is allocated in the 2021 budget for debt services and amortization. Of this, MVR 1,469.9 million is allocated for public debt transactions and MVR 2562.4 million is allocated for interest payment and debt servicing.
The proposed budget for 2021 is MVR 34.8 billion of which total expenditure is MVR 33.3 billion. The budget consists of 62.3% as recurrent expenditure and 37.7% as capital expenditure. It is estimated that the government would receive MVR 17.8 billion as revenue and grants in 2020, of which the majority is from tax revenue. The proposed budget deficit for 2021 is 15.5 billion and this is 23.4% of GDP.
During the budget presentation at the People’s Majlis, the Minister explained the important areas of the budget, income sources, and information regarding debt. The total projected income and free financial assistance that the government will get in 2021 are estimated at MVR17.8 billion.
Minister Ameer also stated that the 2021 budget has emphasized the economic diversification of the country.
As presented at the Parliament, the budget expenditure includes:
1. A total of MVR 4,040.3 million for the provision and expansion of healthcare services. From this budget, MVR 3,274.7 million is allocated for hospital services while MVR 765.6 million is allocated for general health services.
2. A total of MVR 6,997.0 million on economic affairs. Most of the expenditure in this sector (MVR 3,724.0 million) is allocated to economic, social, and labor affairs.
3. The budget 2021 has allocated MVR 3952.5 million for the education sector. MVR 914.4 million is allocated for tertiary education while the remaining MVR 3,038.1 million is allocated for education, not elsewhere classified.
4. MVR 2,337.0 million is allocated for housing and community amenities in the 2021 budget. Among this, the majority of expenditure (MVR 2,194.0 million) is on housing and community development.
5. Expenditures on this function aim to promote equality within society. From the budget allocated for this sector, MVR 1,169.6 million is allocated for sickness and disability, MVR 1,340.0 million for old age, and MVR 1,190.4 / 941.3 million for other expenditures for social protection. The 2021 budget has allocated a total of MVR 3,700 million for this sector.
6. The 2021 budget allocates a total of MVR 1,850.4 million for environmental protection. Expenditure on this function includes waste management, wastewater management, pollution abatement, protection of biodiversity and landscape, among others. The largest component, among this, is wastewater management for which MVR 1,149.0 million is allocated in the 2020 budget.
7. The 2021 budget allocates a total of MVR 1,431.3 million on defense-related expenditures. The majority of this is spent on military defense with a total of MVR 1,272.4 million. The 2021 budget allocates MVR 2,786.0 million for public order and safety. Most of the expenditure is on border control and public safety. This constitutes a total budget of MVR 1,668.7 million.
8. The 2021 budget allocates MVR 2,891.9 million for the provision of general public services. A total of MVR 2,738.1 million is allocated for executive and legislative organs, financial and fiscal affairs, and external affairs, while MVR 153.8 million is allocated for general public services. MVR 768.9 million is allocated for recreation, culture, and religion in the budget 2021. MVR 454.6 million is allocated towards recreation and sporting services while MVR 268.0 million is allocated to religious and other community services. A total of MVR 4,032.3 million is allocated in the 2021 budget for debt services and amortization. Of this, MVR 1,469.9 million is allocated for public debt transactions and MVR 2562.4 million is allocated for interest payment and debt servicing.
