Minster of Finance Mohamed Shafeeq has said that MVR 3 billion of the supplementary budget for this year will be raised from the domestic market and the rest will be covered through austerity and deferred revenue expenditure.

The annual budget, including the supplementary budget, exceeds MVR 49 billion. Of the MVR 6.5 billion added to the budget, MVR 6.1 billion has to be borrowed. The budget was passed with the bulk to be financed by budget support loans and foreign credit.

The administration will now look towards funding the bulk of the budget by selling securities in the domestic market with MVR 200 million raised from an external loan, Shafeeq said while speaking with local media.

So far, MVR 1.2 billion out of the budgeted MVR 1.9 billion, targeted from the domestic market, has been collected and will be available early next month, or mid-next month at the latest, with administration spending limited to only what is necessary, the Minister said. Noting the country’s unhealthy financial situation, Shafeeq said the administration is prioritising meeting essential expenditure and spending on key administration policies.

Shafeeq further made assurances that the country’s finances will improve through current administration efforts.