Ministry of Finance forecasts that state debt will reach to MVR 129 billion in 2024.
The ministry in its Fiscal Strategy Report said the debt-to-GDP ratio will increase by 111% in 2024, and the national debt will increase to MVR 130 billion in 2025.
The ministry further said the government aims to reduce debt-to-GDP ratio by 93% in 2026, which is also the year with the highest loan repayment by the state. Maldives government is expected to pay MVR 11.5 billion in loan repayments in 2026.
The ministry further revealed that the government aims to utilize the state revenue to spend for recurrent expenses and maintain the budget’s primary deficit-to-GDP ratio at 5%.
So far in 2023, the budget deficit-to-GDP ratio is at a negative 6.3%, which is a deficit of MVR 11.5 billion.
The ministry forecasts a budget deficit of MVR 9.8 billion in 2024.