Parliament passes MVR 49.8bn budget for next year

The Parliament has passed a MVR 49.8 billion state budget for next year, with an additional MVR 306 million to the original figure proposed by the Finance Ministry, as decided by the Budget Committee.

The Parliament passed the budget with a unanimous vote of 68 on Wednesday afternoon.

Ahead of the vote, the main opposition MDP – which holds a majority in the Parliament – passed a three-line whip to pass the budget.

The Finance Ministry had submitted a proposed budget of MVR 49.5 billion. But during the review process, the committee added an additional MVR 306 million. This included MVR 249 million in additional funding for Public Sector Investment Program (PSIP) projects – increasing the allocation for PSIP projects from MVR 8.6 billion to MVR 8.9 billion.

The other additional allocations were for the budgets of some of the government offices.

The changes increase the budget deficit to MVR 16.3 billion.

The committee also passed a recommendation to target subsidies. MVR 600 million was allocated in the budget for direct subsidies. The committee also recommended reforming state-owned enterprises and carrying out repayment pensions in a more sustainable manner.

Additional funds were allocated in the funds for several projects:

• K. Maafushi road development project: Increased from MVR 2.2 million to MVR 7 million
• K. Maafushi hospital expansion project: Increased from MVR 3 million to MVR 11 million
• Lh. Kurendhoo road development project: Increased from MVR 1 million to MVR 7 million
• Jamaluddin School special needs classroom project: Increased from MVR 300,000 to MVR 3 million
• AA. Maalhos road development project: Increased from MVR 500,000 to MVR 2.5 million
• AA. Himandhoo road development project: Increased from MVR 1 million to MVR 3 million

While the funds allocated for these projects were increased, the funds allocated for development of airports in the atolls was reduced from MVR 79 million to MVR 60 million.

Meanwhile, MVR 10 million was cut from the MVR 400 million project to reclaim land in K. Fushidhiggaru Falhu – a housing project that was one of President Dr. Mohamed Muizzu’s electoral pledges.

BUDGET DETAILS:

• Total: MVR 49.8 billion
• Income: MVR 33.5 billion
• PSIP: MVR 8.9 billion
• Deficit: MVR 16.3 billion

70 percent of the budget, totaling MVR 34.8 billion, is for recurrent expenditures.