State debt reaches Rf1.6 billion, reports MMA

State debt reached Rf1.6 billion, (US$124.5 million) in July 2010, according a letter sent to parliament by the Maldives Monetary Authority (MMA).

Haveeru reported that the state spent Rf4.3 billion (US$334 million) while Rf3.5 (US$272 million) was received to the budget.

According to the letter, the MMA warned that high recurrent expenditure against revenue “would increase domestic demand in Maldives economy, affect the exchange rate and exacerbate the dollar shortage.”

According to Haveeru, the MMA highlighted the importance of passing the bill on income tax this year. It also recommended that foreign currency revenue be retained in the local banking system.