Fiscal performance

Budget utilization by government offices

According to statistics issued by the Ministry of Finance, the Ministry of National Planning, Housing and Infrastructure received the highest funding for the year. 

As of 17 March 2022, they have utilized almost MVR1.04 billion of their allocated budget, which is approximately a quarter of their allowance for the year. Similar statistics from 18 March 2021 show that the Ministry had disbursed less than MVR500 million during the same time period last year.

The surge in expenditure could be justified by the large number of housing and land reclamation projects being carried out across the country. New projects have been announced in Alif Alif Atoll and Seenu Atoll for this year.

The Ministry of Education has expended over MVR518 million which is higher than their expenditure for the first quarter of 2021 by MVR 84.7 million. The National Social Protection Agency has spent roughly MVR487 million during this period, which is lower than their 2021 first quarter expenditure by MVR27.2 million. 

Other offices have also shown changes in disbursement and the comparison of statistics provided by the Ministry of Finance are as follows:

Expenditure

The Maldivian parliament had approved a total expenditure envelope of MVR34.1 billion for the year. As of 17 March, total expenditure was at MVR6.73 billion. 

The majority of cumulative expenditure consists of recurrent expenditure, which entail wages, salaries, pensions, administrative, and operational expenses. These expenses make up 69 percent of cumulative expenditure, while the remaining 31 percent consists of capital expenditure. Capital expenditures go towards more long-lasting, one-time investments such as developing infrastructure, land and buildings.

Recurrent expenditure was at MVR4.64 billion, increasing by roughly MVR800 million over the same period in 2021. Capital expenditure is recorded as MVR2.07 billion for the first quarter of 2022, which is roughly MVR700 million higher than the recorded figures from March 2021.

Revenue

The government estimated total revenues and grants of MVR24.3 billion for 2022, a projection MVR3.2 million higher than that for 2021.

As of 17 March 2022, cumulative revenues and grants have reached MVR5.7 billion, of which the majority was contributed to by tax revenues. Tourism Goods and Services Tax (TGST), Goods and Services Tax (GST), and Business Property Tax (BPT) were the highest sources of income for the first quarter, contributing to at least MVR4.24 billion (74 percent) of revenues generated. Tax revenues have improved since the same time period last year, which is likely due to the gradual recovery of the tourism industry and worldwide supply chains.

Non-tax revenues such as general fees, permits, property income, fines and investment returns added up to 26 percent of revenues with MVR1.5 billion in 2022, while the first quarter of 2021 only saw MVR757.6 million generated from non-tax revenue sources.