Parliament passes budget after major amendments

The parliament has approved the budget for 2013 today after reducing the proposed MVR 16.9 billion to MVR 15.4 billion and after including a number of recommendations.

A total of 69 members participated in the voting, from which 41 members voted in favour and 28 voted against. Most of the MDP members abstained from the vote.

Members voted for the 16 amendments before passing the final budget vote, 8 of which were passed.

The amendments that were passed include establishing a MVR 100 million fisherman’s subsidy, allocating MVR 50 million for farmers, to transfer the money in the women’s committees and island development committees accounts to the atoll and island councils accounts in a according to a schedule, to not increase duty from diesel and petrol (which currently holds zero percent duty) during import duty revision, and to not increase duty from essential food and cosmetic products.

The parliament had also passed a resolution declaring it mandatory for the government to ask for parliament approval before releasing the 14 islands forthe development of resorts. A resolution to allocate MVR 10 million for civil society organizations regulated by the Public Accounts Committee was also passed today.

Recurrent expenses such as travel expenses, purchase of assets, overtime compensation, and service costs were reduced in the budget.

It was also decided to abolish Bed Tax, increase TGST to 12 percent, impose GST on communication services, and revise import duty.