While announcing the budget last night, Minister for Economy – Aiyaz Sayed Khaiyum says, the deficit of $499.5m is equivalent to 4.5 percent of GDP.
He added that the revised GDP for this fiscal year is estimated at two percent of GDP, lower than the 4.7 percent projected initially.
One of the highlights is on personal income taxes, where the income tax threshold has been increased from $16,000 to $30,000.
Sayed-Khaiyum says this is a benefit for everyone, as people will not pay any personal income tax – up to $30,000 of personal income.
This will relieve the annual burden on taxpayers by approximately $26 million annually, and increase consumer spending power.
There is good news, as government wage earners will receive an average wage increase, of 14.3 percent.
The wage increase will commence in July.
Specialised nurses will also get salary increases of 25 percent, while nurse practitioners will get a 74 percent salary increase.
The teachers’ salaries will increase by 14.3 percent, while school heads will get a salary increase of 13.8 percent.