Finance Minister Ibrahim Ameer has said COVID-19 pandemic is expected to cost MVR 36 billion in revenue to the state.
Ameer noted that the world is in the middle of an economic crisis due to the ongoing pandemic, and to be cautious in making expenditures. Moreover, he highlighted the need to manage block grants and income earned by councils and prioritize essential public services.
Ameer also added that the expenditures need to be cut and benefits from each expenditure maximized in order to minimize the eventual shocks from the loss. He said the target is to reduce the debt which rose as a result of this pandemic. In order to achieve this we need to stress economic diversification by increasing the national GDP via fiscal consolidation. The 2022 budget will aim to do that.