Parliament Committee MVR 56.6 billion budget contingent on project details

Budget Committee of the Parliament today approved the MVR 56.6 billion budget for 2025 without any revisions on the condition that the government must provide details of planned projects to the Parliament.

The Budget Committee voted on the budget this afternoon. Of the 19 members present in the committee, 15 voted in favour of the budget.

The budget for next year is MVR 1.6 billion higher than this year's budget. This year's supplementary budget will increase the total budget to MVR 55 billion while the budget for next year is MVR 56.6 billion.

The government projects next year's revenue to be at MVR 39.8 billion, out of which MVR 2.6 billion is free aid.

Budget details

- Total budget: MVR 56.6 billion

- Revenue: MVR 39.8 billion

- PSIP: MVR 12.4 billion

- Recurrent Expenses: MVR 36 billion

- Deficit: MVR 9.4 billion

- GDP Increase: 6.4 percent

In the Budget Committee, Deputy Speaker of the Parliament and Dhiggaru Constituency Member Ahmed Nazim made general recommendations on the budget.

- Sort programs submitted to PSIP according to criteria

- Send a list of work to be completed before February next year

- Submit the projects signed by the government so far before March next year, identifying which projects will be implemented and which will not be implemented.

- Submit quarterly progress report of the projects to the Parliament next year

Nazim said these suggestions were made because the budget does not include project details.

The Parliament has also recommended that state owned enterprises limit their dependence on state budget and undergo reform as well as to restructure and merge loss-making companies with profitable ones. After dissolving the companies projected to be at a loss, Nazim also recommends companies submit corporate reform schedules and steps to be taken with in efficiency boosting efforts every quarter next year.

Another recommendation made by the Budget Committee is to review measures taken by Maldives Inland Revenue Authority (MIRA) against non-payers under the Tax Act and propose amendments to the Administrative Taxation Act to minimise challenges faced. It was also recommended that the challenges in targeting subsidies be identified and an implementation schedule be formulated and sent to parliament.