Budget to be reduced by MVR 1billion by cutting several expenditures

It has been proposed to the Budget Committee to reduce the MVR16.9 billion budget proposed for 2013 by MVR 1 billion.

Following discussions at the Budget Committee last Thursday, members were able to agree on some issues subsequent to propositions to cut expenditures for nine sectors.

In this regard, it was proposed to reduce the MVR180 million proposed as travel expenditures by 50 percent, bringing the amount down to MVR90.3 million.

It was also suggested to reduce salaries and wages by 50 percent to MVR115 million, office operational expenditures by 30 percent to MVR127 million, office operational services by 35 percent to MVR451.71 million, expenses on services by 30 percent to MVR49.77 million, training expenses by 50 percent to MVR29.58 million, renovation costs by 50 percent to MVR101.25 million,and expenses on purchase of miscellaneous items by 35 percent to MVR102.03 million.

This results in a total reduction of the budget of MVR1.07 billion.

A member of the Budget Committee said that members of MDP, PPM and DRP agree to the suggested amounts, but the issue can only be finalised by taking vote at the Budget Committee.

“Members don’t want to obtain T-bills and commercials loans to make expenses. They want to be able to make ends meet, that’s their view. Generally they’ve agreed to the suggested amounts,” a committee member said.

The members said at the most recent Budget Committee meeting as well, that efforts will be made to reduce the budget to MVR14 billion. Revenue, according to the budget of 2013, is estimated to be about MVR10 billion. MMA has voiced concern that difficulties may be faced if the revenue as estimated in the budget is not realised.