A budget of MVR 34,787,720,151 hse been proposed a the annual state budget for the year 2021.
The budget estimates MVR 17.7 billion will be coming in as free aid, MVR 98 billion in tax, MVR 5.7 billion outside tax and MVR 2.2 billion in other incomes.
Tax Income:
- MVR 2.9 billion in Import Duty
- MVR 2 billion in GST
- MVR 63 million in Green Tax
- MVR 2 billion in TGST
- MVR 2 billion in PBT
- MVR 313 million in airport service charge
The proposed state budget for2021 entails numerous avenues to increase profits including a forecast of MVR 1.2 billion from the sale of land to locals for tourism, parking fees, telecom licensing, real estate and airport development fees.
Similar to the previous budget, the largest amount, 48 percent, is dedicated to the PSIP projects and the salary of state employees.
Major spending on the budget:
- 11 percent for subsidy and Government aid
- 4 percent for the benefit of the economy
- 4 percent for budget contingency
- 5 percent for pensioners and retirees
- 7 percent for loan services
- 2 percent for training programs
- 4 percent for loan repayment
- 24 percent for PSIP projects
- 24 percent for employee salaries
- 3 percent for other spending
The budget for 2021 also includes MVR 4 billion dedicated to the medical sector that includes the development of tertiary hospitals in five islands and the development of a cancer treatment hospital in Laamu Atoll Gan alongside the fight to eradicate COVID-19 and the development of the health sector.
The proposed budget includes MVR 3.7 billion for social protection, MVR 6.9 billion for economic and industrial development, MVR 2.3 billion for housing and social development, 3.9 billion for education, MVR 1.8 billion for environment protection, MVR 4.2 billion for defence and the justice department and MVR 7.6 billion for general service, social and religious along with debts.
A deficit of 15.5 billion is estimated from the annual budget for 2021.
