Supplementary budget in past years approved unlawfully, will take action: AG

The Attorney General on Saturday said that supplementary budget was approved unlawfully over the past years, and promised to take action against culpable parties.

While speaking at the press conference held by the Ministry of Finance, Attorney General Ahmed Usham highlighted the Public Finance Act cites that the supplementary budget should be approved through the parliament.

"The law stipulates that a supplementary budget, if and when required, should be submitted a month prior to the parliament for approval," Usham said.

He further said the law does not allow for the government to expend the state funds and add the excessive amount as supplementary in the following year's budget, which Usham said had been the practice in the last three to four years.

"The expenditure was not made through a legally approved supplementary budget, instead it had been done in breach of the Constitution and the Public Finance Act," the Attorney General added.

While stressing action will be taken against the culpable parties, Usham added that majority of the current financial predicaments were due to such malpractices.

In each of the past three to four years, the then government added a supplementary to the original state budget, and proposed a supplementary of MVR 6.5 billion.

The previous administration's Finance Ministry said this supplementary was required owing to higher Aasandha expenditure, acceleration of progress of development projects, and the increment of fuel subsidy.

Incumbent Minister of Finance Moosa Zameer confirmed a supplementary budget will be proposed for the current year, and the work of which is currently ongoing.