Ministry of Finance has revealed the total state income for the year 2020 was recorded at USD 907 million, while expenditure was recorded at USD 1.75 billion.
As per the statistics of the finance ministry, state expenditure had exceeded income by over USD 843 million last year. The state income of USD 907 million recorded in 2020 was also significantly lower than the USD 1.6 billion generated in 2019.
State income for 2020 included USD 687 million as tax revenue and USD 220 million as non-tax revenue. The state had received USD 55.3 million as foreign grants last year.
While state income had decreased significantly last year, state expenditure was recorded at a similar level as 2019. As such, state expenditure for 2020 was recorded at USD 1.75 billion, as compared to USD 1.87 billion in 2019.
The loss in state income for 2020 was caused by the financial and economic implications of the COVID-19 pandemic. Maldives was forced to close borders from March until July due to COVID-19, completely suspending tourism operations and blocking the main source of state income.