MDP: Next year

Opposition party MDP has said that the 2016 budget presented at the Parliament on Thursday by the Finance Minister Abdulla Jihad indicates that the Maldivian economy is being destroyed day by day.

The detailed statement released by MDP says that although the economy is expected to grow 10.5 percent this year, the information received so far indicates that the growth is at 4.8 percent so far. The statement said that by the end of the year, that number would be even lower.

The total budget for 2016 is MVR 27.457 billion. MDP said that compared to the revised budget for this year that is 22.6 percent increase.

The opposition party says that the national debt would rise to MVR 4.2 billion next year and said that the proposed budget for 2016 shows it. The party said that it is something they are very concerned about.

“This is proof that the Government violates the law of state spending. While the Government’s physical policy should be protecting the intergenerational equity, by the end of the year the debt per person would rise to 100,000 Rufiyaa.” The statement said.

MDP statement said that so far the Government is most proud of the income that would be generated by the passing the Special Economic Zone (SEZ) law but so far now major investment has come to the country.

The party said that investments would come to the Maldives when the Judicial System is amended, transparent policies are fixed in business and by protecting the country from corruption.

“The biggest reason for the failure of the Governments economic policy is hinging it on big investments that are expected under the SEZ. Meaning the Government’s focus is to bring all the projects under the SEZ, although big countries of the world develops exports under SEZ, since the competitive advantage for the Maldives is in tourism sector and fisheries sector, the major investments hoped by the Government coming to the country is unlikely.” MDP statement said.

MVR 9.1 billion is set for the projects of the Public Sector Investment Program (PSIP) in the 2016 budget.

Out of the MVR 9.1 billion for the PSIP projects, MVR 5.2 billion is set for spending. And MVR 2.7 billion as foreign loan aids and MVR 1.2 billion in free aid and trust funds are expected for the next year in the budget.

The largest portion of the PSIP budget is set on resolving sea transportation and developing airports. And so 63 projects of are in the pipeline for next year. They are a project of MVR 2.6 billion. Out of which MVR 783 million would be spent of building ports at 62 islands.