Finance Minister Abdulla Jihad has sent the 2015 projected annual state budget to the People’s Majlis for approval.
While speaking to local media outlet Sun Online, Jihad said that the budget was sent to the parliament last Thursday and that it would be higher than the budget for the year 2013.
The estimated budget for the current year was set at a record MVR 19.95 billion (US$ 1.16 billion). At the time the budget deficit stood at MVR 1.3 billion (US$ 84.3 million).
Jihad revealed in August that the government’s spiralling deficit could leave it unable to pay the salaries of civil servants.
The World Bank warned the government in late 2013 that it was spending well beyond its means noting that some of the biggest expenses were high civil service wages bill, healthcare, and electricity subsidies and transfers to state owned enterprises.
A report released by the World Bank stated that the budget deficit at the time at 81 percent of the GDP was unsustainable and predicted that the deficit could rise to about 96 percent by the year 2015.