Identifier
Created
Classification
Origin
09COLOMBO524
2009-05-14 04:11:00
UNCLASSIFIED
Embassy Colombo
Cable title:
MALDIVES REVISED 2009 BUDGET, OFFICIAL FISCAL DATA
how-toVZCZCXRO3872 RR RUEHLMC DE RUEHLM #0524 1340411 ZNR UUUUU ZZH R 140411Z MAY 09 FM AMEMBASSY COLOMBO TO RUEHC/SECSTATE WASHDC 9970 INFO RUEATRS/DEPT OF TREASURY WASHDC RUCPDOC/DEPT OF COMMERCE WASHDC RUEHNE/AMEMBASSY NEW DELHI 3029 RUEHKA/AMEMBASSY DHAKA 1663 RUEHIL/AMEMBASSY ISLAMABAD 8665 RUEHKT/AMEMBASSY KATHMANDU 6900 RUEHKP/AMCONSUL KARACHI 2483 RUEHCG/AMCONSUL CHENNAI 9291 RUEHLMC/MILLENNIUM CHALLENGE CORPORATION
UNCLAS COLOMBO 000524
SIPDIS
STATE FOR SCA/INSB AND EEB/IFD/OMA
TREASURY FOR SUSAN CHUN
E.O 12958: N/A
TAGS: ECON EFIN EAID MV
SUBJECT: MALDIVES REVISED 2009 BUDGET, OFFICIAL FISCAL DATA
REF: A) COLOMBO 489
B) COLOMBO 395
C) COLOMBO 273
D) 08 COLOMBO 1075
E) 08 COLOMBO 133
UNCLAS COLOMBO 000524
SIPDIS
STATE FOR SCA/INSB AND EEB/IFD/OMA
TREASURY FOR SUSAN CHUN
E.O 12958: N/A
TAGS: ECON EFIN EAID MV
SUBJECT: MALDIVES REVISED 2009 BUDGET, OFFICIAL FISCAL DATA
REF: A) COLOMBO 489
B) COLOMBO 395
C) COLOMBO 273
D) 08 COLOMBO 1075
E) 08 COLOMBO 133
1. Official fiscal data from the revised 2009 budget approved by
the parliament on April 30 has been published. The budget was
prepared within a medium term expenditure framework (MTEF) to cover
the period 2009-2011. It contains ambitious revenue and deficit
targets for 2009. Revenue is estimated to increase sharply by 32%
to 56% of GDP, with privatization expected to bring in as much as
40% of revenue. Other key sources of revenue are taxes (import duty
and tourism related taxes) and resort lease rentals. Utilities and
services to be privatized (or operated as joint ventures with
private sector participation) include the Male' international
airport, regional airports, the electricity company, waste
management operations, and selected educational institutions.
2. Expenditure is budgeted to increase to an extremely high 67% of
GDP in 2009. Approximately three quarters of this is comprised of
current expenditure, notably payments to government servants and
social welfare contributions. Capital expenditure is to be financed
mostly by foreign grants and borrowings. The government expects a
current account surplus of about 5% of GDP. The overall deficit is
estimated at 11% of GDP and represents a marked improvement from the
deficit of about 30% of GDP included in the original 2009 budget
(ref D). The deficit is to be financed entirely from foreign
sources. The revised budget, however, runs the risk of a much
larger deficit if planned privatization proceeds do not materialize.
According to the MTEF, the deficit is targeted to contract sharply
to 4.5% of GDP in 2010 and post a small surplus in 2011.
3. FISCAL DATA, 2007-2009: Comparison between the 2007 and 2008
final budgets, and the revised 2009 budget. All figures are in
millions of Rufiyaa. Figures in parentheses represent the
percentage of GDP. Source: Ministry of Finance and Treasury,
Maldives.
-------------- --------------
2007 2008 2009 rev.
-------------- --------------
Revenue 6,527(48) 7,199(45) 9,547(56)
Expenditure and
Net lending 8,200(61) 9,788(61) 11,369(67)
--Current 6,560 7,943 8,631
--Capital 1,765 2,019 2,745
Deficit 1,673(12) 2,589(16) 1,822(11)
Financing:
Foreign Grants 1,044 557 567
Foreign loans 615 616 1,513
Domestic financing 15 1,414 -258
Exchange rate: 1 USD=12.8 Rufiyaa
-------------- --------------
MOORE
SIPDIS
STATE FOR SCA/INSB AND EEB/IFD/OMA
TREASURY FOR SUSAN CHUN
E.O 12958: N/A
TAGS: ECON EFIN EAID MV
SUBJECT: MALDIVES REVISED 2009 BUDGET, OFFICIAL FISCAL DATA
REF: A) COLOMBO 489
B) COLOMBO 395
C) COLOMBO 273
D) 08 COLOMBO 1075
E) 08 COLOMBO 133
1. Official fiscal data from the revised 2009 budget approved by
the parliament on April 30 has been published. The budget was
prepared within a medium term expenditure framework (MTEF) to cover
the period 2009-2011. It contains ambitious revenue and deficit
targets for 2009. Revenue is estimated to increase sharply by 32%
to 56% of GDP, with privatization expected to bring in as much as
40% of revenue. Other key sources of revenue are taxes (import duty
and tourism related taxes) and resort lease rentals. Utilities and
services to be privatized (or operated as joint ventures with
private sector participation) include the Male' international
airport, regional airports, the electricity company, waste
management operations, and selected educational institutions.
2. Expenditure is budgeted to increase to an extremely high 67% of
GDP in 2009. Approximately three quarters of this is comprised of
current expenditure, notably payments to government servants and
social welfare contributions. Capital expenditure is to be financed
mostly by foreign grants and borrowings. The government expects a
current account surplus of about 5% of GDP. The overall deficit is
estimated at 11% of GDP and represents a marked improvement from the
deficit of about 30% of GDP included in the original 2009 budget
(ref D). The deficit is to be financed entirely from foreign
sources. The revised budget, however, runs the risk of a much
larger deficit if planned privatization proceeds do not materialize.
According to the MTEF, the deficit is targeted to contract sharply
to 4.5% of GDP in 2010 and post a small surplus in 2011.
3. FISCAL DATA, 2007-2009: Comparison between the 2007 and 2008
final budgets, and the revised 2009 budget. All figures are in
millions of Rufiyaa. Figures in parentheses represent the
percentage of GDP. Source: Ministry of Finance and Treasury,
Maldives.
-------------- --------------
2007 2008 2009 rev.
-------------- --------------
Revenue 6,527(48) 7,199(45) 9,547(56)
Expenditure and
Net lending 8,200(61) 9,788(61) 11,369(67)
--Current 6,560 7,943 8,631
--Capital 1,765 2,019 2,745
Deficit 1,673(12) 2,589(16) 1,822(11)
Financing:
Foreign Grants 1,044 557 567
Foreign loans 615 616 1,513
Domestic financing 15 1,414 -258
Exchange rate: 1 USD=12.8 Rufiyaa
-------------- --------------
MOORE