Government revenue, reserves down in August

Maldives Monetary Authority (MMA) building in the capital Male. MIHAARU PHOTO/NISHAN ALI

Maldives Monetary Authority (MMA) building in the capital Male. MIHAARU PHOTO/NISHAN ALI

The government revenue and reserves had both decreased in the month of August, Maldives central bank’s statistics showed.

According to Maldives Monetary Authority (MMA)’s monthly economic review, the government revenue in August was MVR 1.2 billion, which is MVR 426 million short of the previous year’s record.

MMA attributed the drop in numbers to the decrease in revenue earned from sources other than taxes. According to MMA, these revenues had declined due to the drop in resorts’ lease extension fees.

Statistics also indicate a drop in government revenue via taxes, which resulted majorly from a decrease in business profit tax.

State expenditures had also spiked in August, amounting to MVR 1.8 billion which is MVR 41.3 million higher than 2015.

According to MMA, the increase in expenditures resulted from government capital expenses and costs of major infrastructural development projects. Statistics also indicate that while capital expenses had gone up, recurrent expenses had lowered.

Government securities sold by the end of August also amounted to MVR 21.5 billion, which is a 14 percent increase from last year.

The economic review stated that government T-Bills sold to banks had increased by 28 percent in August, with a spike in T-Bond sales as well.

Usable bank reserves at USD 186 million

MMA’s economic review also disclosed that its usable reserves had dropped to USD 186 million. Statistics indicate that this is monthly decrease of six percent and a yearly drop of 15 percent.

The foreign-exchange reserve is currently at USD 532.5 million.

According to MMA, the reserves had gone down due to its increase in US dollar sales to banks and state-run companies to aid the nation’s dollar shortage.

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