Minister of Finance Moosa Zameer has projected that state revenue will exceed initial budget forecasts by the end of the year. His optimistic outlook came as he presented a supplementary budget of USD 332 million to Parliament, aimed at addressing additional expenses in state operations.
The supplementary budget includes allocations for both recurrent expenses, valued at USD 97.3 million, and capital expenditures totaling USD 227 million. With a base state budget of USD 3.2 billion, officials initially anticipated state revenue, donations, and aid to reach USD 2.2 billion. Of that, USD 1.8 billion in donations had already been secured as of September 30.
In his remarks to Parliament, Minister Zameer highlighted unexpected income streams and newly implemented measures aimed at boosting revenue collection. The government, he explained, now expects an additional USD 41.5 million in state revenue and donations.
However, the Minister underscored the need for fiscal reforms to address the nation’s long-standing budget deficit. Without sustainable budgeting, he warned, issues like restricted access to concessional loans and depleted reserves will likely continue to strain government finances. He urged Parliament to consider measures that ensure sustainable budgeting to support the country’s long-term financial health.
Once approved, the supplementary budget will add USD 3.6 billion to this year’s budget, which comes after last year’s approved supplementary budget of USD 421 million.