The Ministry of Finance has revealed that the state deficit is set to rise to MVR 15 billion with the introduction of a supplementary budget amounting to MVR 6.5 billion.
As outlined in the ministry's report on the supplementary budget, this adjustment will result in a deficit-to-GDP ratio of 14 percent, a significant increase from the previous 8.3 percent recorded for the 2023 fiscal year.
Comparatively, the year 2022 concluded with an annual deficit of MVR 11 billion, which was equivalent to 12 percent of the GDP.
Looking ahead, the ministry's primary objective for the upcoming year's state budget is to maintain the deficit-to-GDP ratio at 5 percent.
Projections indicate that state expenditure will reach MVR 47 billion by the close of 2023, while state revenue is anticipated to total MVR 32 billion.
To facilitate the supplementary budget, the government will secure MVR 3 billion in budget support loans, along with an additional MVR 1.9 billion funded through treasury bills (T-Bills), and an external loan of MVR 1 billion.
In tandem with the supplementary budget increase of MVR 6.5 billion, the state's debt is projected to rise by MVR 6 billion, resulting in a total national debt of MVR 120 billion by the end of 2023.