Proposing the supplementary budget during today's parliament session, the minister said that one reason for the MVR 5.1 billion increase in this year's budget is higher project related expenditures.
Minister of Finance Moosa Zameer said today that many Public Sector Investment Program (PSIP) project allocations are unrealistic, with the total contract value of projects for the year exceeding MVR 36 billion.
Proposing the supplementary budget during today's parliament session, the minister said that one reason for the MVR 5.1 billion increase in this year's budget is higher project related expenditures.
He also noted that additional funds were extended to state owned enterprises (SOEs), with MVR 150 million allocated to support new projects and to provide capital for the newly established development bank.
"This shows that many projects were awarded in 2023, and advance payments were made without considering the fiscal situation or ensuring sustainable expenditure in the sector," Zameer said.
He added that another factor driving the budget increase is the lack of proper implementation of reforms, despite their introduction.
Zameer revealed that 74 percent of this year’s budget has already been spent, with MVR 37 billion used on government expenditure, out of a total of MVR 39 billion.
He said that the Maldives is projected to receive MVR 34 billion in grants and revenue by the end of the year, compared to MVR 27 billion received last month.
The upcoming change in import duty on cigarettes is expected to boost revenue for the year, Minister Zameer added.
The government aims to continue development projects without disruption and to deliver on its commitments by aligning project pipelines with the President's vision, Zameer said.
This year's budget includes over 3,000 projects.
- PSIP : MVR 2 billion
- Subsidy (fuel, staples, electricity, water and sewerage): MVR 1 billion
- Student loan: MVR 458 million
- SOEs: MVR 441 million
- NSPA: MVR 263 million
- Medical consumables: MVR 200 million
- Salaries: MVR 24 million
The supplementary budget allocates MVR 458 million for student loans and MVR 441 million for state owned enterprises.
Additionally, funding for the National Social Protection Agency (NSPA) has been increased to MVR 263 million, while the budget for medical consumables has been increased by MVR 200 million.
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