The amount of money owed to the state in taxes and other revenue that remains uncollected is growing year after year, which is a major concern, Auditor General Hussain Niyazy has said.
Niyazy made the remarks at a meeting held today by the People’s Majlis Budget Committee to review the state budget proposed by the government for 2027. According to him, figures show that around MVR 22 billion owed to the state in taxes has not been collected.
“Comparing 2021 and 2025, these amounts have increased very significantly. Of particular concern is the rise in recent years in tax revenue owed that has not been collected,” Niyazy said.
He also noted that audits by the Maldives Inland Revenue Authority (MIRA) and information from the state’s revenue-collecting agencies show a growing list of parties failing to pay what they owe to the state. He therefore advised giving revenue-collecting agencies additional legal powers so that money owed to the state can be collected on time.
Niyazy said unpaid bills in the state’s public accounting system had reached nearly MVR 7 billion as of September, yet no funds have been included in next year’s budget to settle them. He said it was therefore very important for the Finance Ministry to find a way to pay them.
The Auditor General also pointed out that the 2027 budget again includes USD 50 million to be raised as ad hoc revenue, and that without this revenue, recurrent expenditure cannot be covered by state income. The current 2026 budget also included USD 50 million in this way, but based on revised revenue figures, only USD 48 million has been received, he said. Niyazy therefore advised cutting state spending in line with the revenue received.
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