Following the committee’s approval, the budget will be returned to the parliament floor for debate and a final decision will be taken.
The parliamentary committee has approved the government’s supplementary budget of MVR 5.1 billion
Following the committee’s approval, the budget will be returned to the parliament floor for debate and a final decision will be taken.
With the proposed MVR 5.1 billion supplementary budget, the budget deficit is expected to increase to MVR 18 billion, bringing the total state budget for the year to MVR 55 billion.
The supplementary budget includes plans to source MVR 1.4 billion in foreign loan assistance, with an additional MVR 3 billion anticipated from the domestic market.
- PSIP: MVR two billion
- Subsidy (fuel, food, electricity, sewerage and water services): MVR one billion
- Contingency budget: MVR 650 million
- Student loan: MVR 458 million
- State Owned Enterprises: MVR 441 million
- NSPA: 263 million
- Medical Consumables: MVR 200 million
- Salaries: MVR 24 million
The largest part of the supplementary budget is to be spent of PSIP projects. Out of the proposed 5 billion, 2 billion is allocated for PSIP projects.
The second largest part of the supplementary budget is spent on subsidies. Subsidy costs are increasing because the subsidy reforms were not implemented as previously planned. With the previously set MVR 2.8 billion for subsidies, the additional allocation would result in a total of MVR 3.8 billion being allocated for subsidies.
Approximately 70 percent of this year's budget will be allocated to recurrent expenditures, with the total recurrent expenditure rising to MVR 36.4 billion following the supplementary budget. Meanwhile, capital expenditure on projects will increase from MVR 15 billion to MVR 19 billion.
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