Budget Aim
The National Budget 2021 is planned and set to be in accordance with the implementation of the “National Resilience and Recovery Plan 2020-2022” formulated to highlight policy priorities in order to recover from the effects of Covid-19.
Economic Outlook
This report includes analyses on the Macroeconomic Developments in 2020 and the Outlook for the Medium-Term. The scope of the report covers the global and Maldivian economy in 2020 and the medium-term prospects. The macroeconomic prospects section for Maldives covers information on GDP, Inflation and the Balance of Payments of the economy.
Economic
Fiscal Policy Outlook
This statement focuses on the fiscal position and prospects in light of the fiscal policy outlined by the Government. The report will cover the outcomes expected from the Budget, Trends in Expenditure and Revenue in 2020, and the Medium-Term. The report will also highlight the effect of fiscal policy on debt and deficit in 2021.
Fiscal
Public Sector Investment Program
This report highlights the developments of ongoing Public Sector Investment Programs (PSIP), which were planned and budgeted for in 2020. The report also outlines new and ongoing PSIPs approved for implementation in 2021.
PSIP
Revenue and expenditure
Revenue
21,129
million
rufiyaa

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

MVR 21.1 billion was approved as the Total Government Revenue and Grants in 2021, of which Tax Revenue constitutes the major item.

Revenue table
Expenditure
33,432
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 Approved Total Expenditure budget for 2021 is MVR 33.4 billion, which adds up to a Total Budget of MVR 34.9. Total Expenditure is calculated by deducting loan repayments and contribution to international financial institutions from the Total Budget.

Expenditure table
Deficit
12,303
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.

Summary table
Expenditure details
Health
4,055
million
rufiyaa

The 2021 Budget includes a total of MVR 4,054.9 million for the provision and expansion of healthcare services. From this budget, MVR 3,289.3 million is allocated for hospital services while MVR 765.6 million is allocated for general health services.

Economic Affairs
7,030
million
rufiyaa

The 2021 Budget includes a total of MVR 7,029.9 million on economic affairs. Most of the expenditure in this sector (MVR 3,723.7 million) is allocated for economic diversification, labour affairs and the development of the private sector.

Education
3,981
million
rufiyaa

The 2021 Budget has allocated MVR 3,981.0 million for the education sector. MVR 918.5 million is allocated for tertiary education while the remaining MVR 3,062.5 million is allocated for other levels of education.

Housing and Community Amenities
2,408
million
rufiyaa

MVR 2,407.9 million is allocated for housing and community amenities in the 2021 Budget. Among this, the majority of expenditures (MVR 2,264.3 million) are on housing and community development.

Social Protection
3,702
million
rufiyaa

Expenditures on this function aim to promote equality within the society. From the budget allocated for this sector, MVR 1,169.6 million is allocated for sickness and disability allowances, MVR 1,340.0 million for pensions, and MVR 1,192.4 million for other expenditure for social protection. The 2021 Budget has allocated a total of MVR 3,702.0 million for this sector.

Environmental Protection
1,856
million
rufiyaa

The 2021 Budget allocates a total of MVR 1,856.3 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 1,148.4 million is allocated for in the 2020 Budget.

Defence, and Public Order and Safety
1,431
million
rufiyaa

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 2,810.2 million for public order and safety. Most of the expenditure are on border control and public safety. This constitutes a total budget of MVR 1,668.7 million.

General Public Services and Recreation, Culture and Religion
6,845
million
rufiyaa

The 2021 Budget allocates MVR 2,907.1 million on the provision of general public services. A total of MVR 2,748.7 million is allocated for executive and legislative organs, financial and fiscal affairs, and external affairs, while MVR 158.4 million is allocated for general public services.

MVR 803.8 million is allocated for recreation, culture and religion in the 2021 Budget. MVR 482.4 million is allocated towards recreation and sporting services while MVR 275.1 million is allocated to religious and other community services.

A total of MVR 3,938.3 million is allocated in the 2021 Budget for debt services and amortization. Of this, MVR 1,469.9 million is allocated for loan repayments and MVR 2468.4 million 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]