President Dr Mohamed Muizzu has responded to reports of a decline in capital expenditure, clarifying that his government is implementing projects without resorting to printing money.
President Dr Mohamed Muizzu has responded to reports of a decline in capital expenditure, clarifying that his government is implementing projects without resorting to printing money.
According to weekly statistics published by the Ministry of Finance, Maldives' capital expenditure until 21 March was recorded at MVR 2.06 billion, which is a decline from the MVR 3.64 billion reported within the same period last year.
The capital expenditure recorded for this period also includes expenditure for Public Sector Investment Programme (PSIP) projects, which has also decreased significantly in comparison to last year. While MVR 2.88 billion was spent on PSIP projects for the same period last year, the PSIP expenditure for 2024 stands at MVR 1.13 billion.
Speaking at a campaign event held near the Hiyaa Towers in Hulhumalé Phase 2, President Dr Muizzu also stated that the stark difference in values being reported for PSIP expenditure was the result of misinformation.
The President remarked that the previous government had taken a loan of MVR 2 billion to implement PSIP projects, but the reality was that only projects worth MVR 900 million had progressed in that period.
"Without taking loans, without overdrafts, we have implemented MVR 1.1 billion in development projects," said President Dr Muizzu.
He reiterated that his government was continuing work on more than 500 projects initiated by the previous government without having to rely on printing money. The President added that when his government assumed office, the Sovereign Development Fund (SDF) set up to pay foreign loans had accumulated only USD 2 million.
However, the President highlighted that his government had already deposited USD 35 million into the fund without taking on additional loans, printing money or halting projects.
"At this rate, by the end of this year, this account created to repay loans taken in the name of Maldivian citizens will hopefully have reached USD 100 million," said the President.
"We will run this country with income that is not sourced from printing money."
President Dr Muizzu went on to emphasize how important it was for the government to win a majority in the upcoming vote. He restated the significance of the role played by parliament in fulfilling pledges made to the people, and urged citizens to hand over a large majority to the Progressive Party of Maldives (PPM) / People's National Congress (PNC) coalition in this month's Majlis Elections.
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