The government has presented a budget of MVR 42.6 billion for the next fiscal year in parliament.

Finance Minister Ibrahim Ameer presented the budget on behalf of the government.

Presenting the budget to parliament, Minister Ameer said that the main focus of the budget is to fulfil the promises made by President Ibrahim Mohamed Solih to the people. While preparing the state's badge for the next fiscal year, it will focus on ensuring fiscal and debt sustainability that sustains the country's economic growth in the medium term.

The state budget presented for the next fiscal year is MVR 42,680,269,914 (forty-two billion six hundred eighty million two hundred sixty-nine thousand nine hundred fourteen). According to Ameer, MVR 40.6 billion will be spent as an expenditure which includes MVR 28.6 billion on recurring expenditures and MVR 14.1 billion on capital expenditures. A large part of the difference between budget and expenditure is contributed to meeting the state's debts. 

Ameer indicated that MVR 32.1 billion in total revenue and grants are anticipated for the state in 2019. The expected tax revenue for this is MVR 23.5 billion, while the estimated non-tax revenue is MVR 6.1 billion. Ameer made note of the MVR 5 billion primary budget gap with this.

Presenting the year's budget, Ameer stated that MVR 8.4 billion of the budget's capital expenditure would be spent on government-run PSIP projects. He stated that MVR 12.9 billion will be spent on salaries and pensions of employees in the 2023 budget. Recurring expenses such as procurement of goods and services, transportation and repair will cost MVR 5.6 billion, while MVR 6.6 billion will be spent on subsidies and aid. 

The government stated that MVR 11.5 billion would be required to finance the budget, which would cover transfers to sovereign development funds as well as the deficit for the following year. According to Ameer, MVR 6.5 billion of this amount was intended to be raised by foreigners, of which MVR 4.1 billion was intended to pay off loans previously committed to the projects.

Minister Ameer said the plan to raise more from abroad was $150 million planned to be raised from international financial institutions and friendly states. The government also revealed plans to raise an additional MVR 5 billion from domestic buyers, of which MVR 4.7 billion was intended to sell treasury bills.

The government projects total debt to fall to 108.9 percent by the end of next year from 111 percent by the end of this year, taking into account the high likelihood of growth in GDP relative to total debt.