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Committee approves MVR 49.8 billion budget, with MVR 306 mil inclusion

Mohamed Rehan
10 December 2023, MVT 12:37
During a budget review committee meeting-- Photo: People's Majilis
Mohamed Rehan
10 December 2023, MVT 12:37

Parliament's budget committee has approved an MVR 49.8 billion state budget for 2024 with the inclusion of an additional MVR 306 million.

At the committee's meeting held on Thursday evening, December 07, the budget was unanimously approved by the members.

Initially, the Ministry of Finance submitted an MVR 49.5 billion state budget for the upcoming year.

During the committee review phase, the most significant increment for the budget sections was observed in the Public Sector Investment Program (PSIP) with an additional MVR 249 million allocated. This brings the annual total of PSIP to MVR 8.9 billion from the initial MVR 8.6 billion.

The remaining increments were made to the annual budgets of a few government agencies.

While the allocated budget for some projects decreased, others observed an increment. Reclamation of Hulhumalé, Gulhifalhu, and Giraavaru observed an additional increment of MVR 400 million, bringing the project's total value to MVR 600 million.

The amendments would increase the budget deficit to MVR 16.3 billion.

The committee further provided recommendations to targeted subsidies, and subsequently approved the new system. The government allocated MVR 600 million for the direct transfer system of subsidies to individual citizens who require them.

Additionally, the committee had recommended to reform state-owned enterprises (SOEs) and improve sustainability of the retirement pension scheme.

Projects with budget allocation increment

- Kaafu atoll Maafushi road development: from MVR 2.2 million to MVR 7 million

- Expansion of Kaafu atoll Maafushi hospital: MVR 3 million to MVR 11 million

- Lhaviyani atoll Kurendhoo road development: MVR 1 million to MVR 7 million

- Development of Jamaluddin School's special needs classrooms: MVR 300,000 to MVR 3 million

- Alif Alif atoll Maalhos road development: MVR 500,000 to MVR 2.5 million

- Alif Alif atoll Himandhoo road development: MVR 1 million to MVR 3 million

While the allocations for these projects have been increased, allocation for airport development projects have been reduced from MVR 79 million to MVR 60 million.

The committee also excluded the MVR 400 million allocation for Fushidhiggaru lagoon reclamation. The project is a major campaign pledge by President Dr. Mohamed Muizzu during the presidential campaign, envisioned as a comprehensive solution to housing difficulties in the Malé region.

Budget Details

- Total Budget: MVR 49.8 billion

- Total Revenue: MVR 33.5 billion

- PSIP: MVR 8.9 billion

- Deficit: MVR 16.3 billion

From the total budget, 70 percent of the allocation would be concentrated on recurrent expenditure, amounting to MVR 34.8 billion.

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