Budget Aim
National Budget 2022 is planned and set to overcome the fiscal risks and challenges faced because of measures taken to prevent the spread of Covid-19 virus. Furthermore, this budget aims to maintain debt at sustainable level while providing fiscal space to achieve goals of Strategic Action plan and government’s pledges.
Economic Outlook
This report includes analyses on the Macroeconomic Developments in 2021 and the Outlook for the Medium-Term. The scope of the report covers the global and Maldivian economy in 2021 and the medium-term prospects. The macroeconomic prospects section for Maldives covers information on GDP, sectors of the economy, inflation, and the Balance of Payments of the Maldives.
Fiscal Policy Outlook
This statement focuses on the fiscal position and prospects with respect to the fiscal policy outlined by the Government. The report will cover the outcomes expected from the Budget, Trends in Expenditure and Revenue in 2021, and the Medium-Term. The report will also highlight the effect of fiscal policy on debt and deficit in 2022.
Public Sector Investment Program
This report highlights the developments of ongoing Public Sector Investment Programs (PSIP), which were planned and budgeted for in 2021. The report also outlines new and ongoing PSIPs approved for implementation in 2022
Medium Term Fiscal Risk Statement
This report includes possible chnages to budget 2022 forecasts due various risks.
Revenue and expenditure
Revenue
24,280
million
rufiyaa

Government Revenue consists of Tax Revenue, Non-Tax Revenue and Grants.

MVR 24,279.9 million was proposed as the Total Government Revenue and Grants in 2022, of which Tax Revenue constitutes the major item.

Expenditure
34,028
million
rufiyaa

Government Expenditure is composed of two main types of expenditures: Recurrent Expenditure (expenditure incurred for the day-to-day running of the Government and providing public services) and Capital Expenditure (expenditure on infrastructure projects and capital items such as machinery and equipment).

The Proposed Total Expenditure budget for 2022 is MVR 34,027.9 million, which adds up to a Total Budget of MVR 36,925.4 million. Total Expenditure is calculated by deducting loan repayments and contribution to international financial institutions from the Total Budget.

Deficit
9,748
million
rufiyaa

The Overall Budget Balance is the difference between Total Revenues and Grants, and Total Expenditures. The Overall Budget Balance is at a deficit due to higher Total Expenditures compared to Total Revenues and Grants. The Primary Budget Balance is the Overall Balance after deducting loan servicing costs.

The approved budget balance for 2021 is an Overall Deficit of MVR 12.3 billion. The Primary Balance for this period is a Deficit of MVR 9.8 billion. This Deficit is financed through various financial instruments such as Bonds, Sukuk and Treasury Bills and other means of borrowing.

Expenditure details
Health
4,640
million
rufiyaa

The 2022 Budget includes a total of MVR 4,640 million for the provision and expansion of healthcare services. From this budget, MVR 3,784 million is allocated for hospital services while MVR 603 million is allocated for general health services.

Economic Affairs
8,085
million
rufiyaa

The 2022 Budget includes a total of MVR 8,085 million on economic affairs. Most of the expenditure in this sector (MVR 3,466 million) is allocated for economic diversification, labour affairs and the development of the private sector. MVR 2,418 million is also allocated in this budget for transport.

Education
4,067
million
rufiyaa

The 2022 Budget has allocated MVR 4,067 million for the education sector. MVR 949 million is allocated for tertiary education while the remaining MVR 3,117 million is allocated for other levels of education.

Housing and Community Amenities
2,483
million
rufiyaa

MVR 2,483 million is allocated for housing and community amenities in the 2022 Budget. Among this, the majority of expenditures (MVR 2,333 million) are on housing and community development. Other expenditures allocated in this sector are for providing drinking water.

Social Protection
3,059
million
rufiyaa

Expenditures on this function aim to promote equality within the society. From the budget allocated for this sector, MVR 1,206 million is allocated for sickness and disability allowances, MVR 1,404 million for pension of elderly, and MVR 449 million for other expenditure for social protection. The 2022 Budget has allocated a total of MVR 3,059 million for this sector.

Environmental Protection
1,543
million
rufiyaa

The 2022 Budget allocates a total of MVR 1,543 million on environmental protection. Expenditure on this function includes waste management, waste water management, pollution abatement, protection of biodiversity and landscape, among others. The largest component, among this, is sanitation in islands for which MVR 836 million is allocated for in the 2022 Budget.

Defence, and Public Order and Safety
1,675
million
rufiyaa

The 2022 Budget allocates a total of MVR 1,675 million on defense related expenditures. The majority of this is spent on military defense with a total of MVR 1,656 million.

The 2022 Budget allocates MVR 3,027 million for public order and safety. Most of the expenditure are on border control and public safety. This constitutes a total budget of MVR 1,928 million.

General Public Services and Recreation, Culture and Religion
7,508
million
rufiyaa

The 2022 Budget allocates MVR 1,731 million on the provision of general public services. A total of MVR 1,568 million is allocated for executive and legislative organs, financial and fiscal affairs, and external affairs, while MVR 163 million is allocated for general public services.

MVR 839 million is allocated for recreation, culture, and religion in the 2022 Budget. MVR 426 million is allocated towards recreation and sporting services while MVR 281 million is allocated to religious and other community services.

A total of MVR 5,777 million is allocated in the 2022 Budget for debt services and amortization. Of this, MVR 2,862 million is allocated for debt repayments and MVR 2,915 2million is allocated for interest payment and debt servicing.

Ministry of Finance
Ameenee Magu, Block 379, Male'
Republic of Maldives

Tel: 1617
Tel: +(960) 334 9200
Fax: +(960) 333 8034

E-mail: [email protected]