Ameer: MVR 7B supplementary budget will be proposed this year

Former Finance Minister Ibrahim Ameer has predicted that another MVR 7 billion supplementary budget will be proposed again this year if the government is proceeding as they are at present.

Speaking at an MDP press conference on Tuesday, Ameer cited witnessing the current administration set aside cost reduction measures and stray from this year’s budget plan.

In this regard, he detailed that cost reduction measures in this year’s budget include the disbursement of basic pension to only rightful recipients and reforming subsidies and pensions currently available to the public.

On the contrary, Ameer stressed a change in the tone of President Dr. Mohamed Muizzu and senior government officials.

“On reducing subsidies, the President has pledged to increase it even further than present. That any subsidy, Aasandha and pension that is presently received by citizens will not be halted. We do believe in the need to reform Aasandha for a more comprehensive health sector. What we want to highlight is the fact that this is not proceeding in accordance with the budget plan,” he said.

The current administration has estimated that the state will save MVR 7.7 billion with the cost reduction measures implemented. However, Ameer believes the administration has no plans to implement cost reduction measures into the second month of the year.

On this note, he cited an increase in the number of employees in state-owned companies and political appointees – further construing ways to save MVR 7.7 billion.

“If the government were to continue in this direction, I strongly believe an MVR 7 billion supplementary budget will again be submitted with no way of financing,” he said.

Ameer criticized the current administration for being clueless while alleging they have surpassed the allocated budget on travel expenses, administrative costs, and political appointees.

The Parliament had originally passed a budget of MVR 49.8 billion for last year. In October, the Parliament approved a supplementary budget of MVR 5.1 billion – increasing the total budget to MVR 55 billion. This increased the total budget deficit to MVR 18 billion, which is 16 percent of the GDP.

The Parliament has passed a projected state budget of MVR 56.6 billion for 2025, which the current administration assured will be strictly adhered to.