The Ministry of Finance is to submit a state budget projected at MVR 50.6 billion for 2024.

The statement indicating the fiscal strategy from 2024 – 2026 notes that based on the baseline expenses, figures that can be saved from cost-cutting measures and the new projects and programmes to be included in the budget, the total budget estimated for 2024 is MVR 50,679.1 million or MVR 50.67 billion.

This figure is an increase of 5.3 percent compared to the budget estimated for 2023.

According to the statistics, expenditure for 2024 is predicted to be at MVR 48,094.9 million or MVR 48 billion.

And while the implementation of the proposed cost-cutting measures is expected to drop the figure to MVR 44,948.8 million or MVR 44.9 billion in 2025, expenditure is expected to increase at an average of 0.5 percent per annum, even in the medium term.

The fiscal strategy statement for 2024 – 2026 further notes that the baseline budget estimated for 2024 is MVR 49,370.7 million or MVR 49.3 billion.

As for recurrent expenditure, a total of MVR 32.7 billion is anticipated to be spent, of which the cost for pension will be MVR 13 billion and MVR 6.8 billion is expected to be spent on subsidies.

In addition, grants to local councils from the next year's budget for recurring expenses are estimated to be MVR 1.9 billion, while other recurring expenses are estimated at MVR 5.4 billion.

The statement indicating the fiscal strategy estimated the state's capital expenditure at MVR 14.9 billion from 2024 to 2026. Out of the capital expenditure, MVR 10.6 billion has been allocated for Public Service Investment Programmes (PSIPs).