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PSIP projects came to a halt due to insufficient budget allocations: Muththalib

Minister Muththalib has stated that there are Public Sector Investment Program (PSIP) projects worth MVR 31.5 billion currently commenced in various islands, despite which only MVR 5 billion has been allocated in this year's budget for these projects.

Mariyath Mohamed
13 August 2024, MVT 11:56
Mariyath Mohamed
13 August 2024, MVT 11:56

Minister of Construction and Infrastructure Dr Abdulla Muththalib has stated that there are Public Sector Investment Program (PSIP) projects worth MVR 31.5 billion currently commenced in various islands, despite which only MVR 5 billion has been allocated in this year's budget for these projects.ca

The Minister made these remarks in response to a question posed by opposition Maldivian Democratic Party (MDP) MP for Kendhoo Mauroof Zakir regarding the halting of the water and sewerage system project in Baa atoll Dhonfanu.

Muththalib said that the total cost of the PSIP projects presently signed by the government amount to MVR 36.8 billion. Of these, projects worth MVR 31.5 billion have already been commenced.

However, the government has been forced to halt some of these projects as the fund allocation for them is less than MVR 5 billion in this year's budget.

"This year, we have an allocation of less than MVR 5 billion. In reality, the budget is not in a way which allows us to proceed with these projects unless through prioritizing them," he said.

As an example, the Minister stated that the Dhonfanu water and sewerage system project has a budget allocation of MVR 1.7 million.

"How can we go forward with the project with an allocation this low?"

He urged the parliament to allocate enough funds to continue with projects when they are compiling budgets. Otherwise, the government would be necessitated to take funds allocated to other areas if these projects are to be continued, he said.

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