Speaker: Passing budget as it is will result in loss of confidence among financial institutions

Parliament Speaker, former President Mohamed Nasheed. (Photo/People's Majlis)

Parliament Speaker, former President Mohamed Nasheed said on Monday that the passage of the proposed state budget for 2021 as it is will result in loss of confidence in Maldives among international financial institutions.

He made the statement in response to remarks by a parliamentarian during the parliamentary debate on the budget on Monday.

Taking part in the debate, South Thinadhoo MP Abdulla Saneef said that he is certain that the government will not be able to carry out some of the proposed projects for Thinadhoo in the upcoming year though they may be included in the budget, and that he therefore wishes for the projects to be removed from the budget.

In response, Nasheed said that Saneef had a valid point.

“The deficit will be reduced once allocations are made in light of what can actually be done next year. And they can have a clear picture of the budget. And financial institutions will have confidence in Maldives’ treasury the more the budget is clearer,” he said.

“I believe that if we pass the current budget, it will diminish the confidence in Maldives’ treasury.”

The government presented the proposed state budget of MVR 34.79 billion for 2021 to the Parliament last week.

The projected expenditure totals MVR 33.29 billion while the projected revenue totals MVR 17.79 billion, resulting in an overall budget deficit of MVR 15.50 billion - which is 23 percent of the GDP.