Supplementary budget: Debate ends, forwarded to Committee

The Parliament has concluded its debate on the government proposed MVR 5.1 billion supplementary budget for the state, and has forwarded it to the committee stage for review.

The budget was presented to the Parliament during today's session by Finance Minister Moosa Zameer. This is the first budget prepared by the ministry under his leadership since he got transferred from the Foreign Ministry on 30th September.

The supplementary budget debate started at 13:30 hrs and the Parliament voted to continue the session until the debate concluded. The Parliament also approved to allow one day for the committee to review the budget, in a bid to expedite the budget's approval.

If the supplementary budget is approved as it is now, the state deficit would spike up to MVR 18 billion. According to the Finance Ministry, the biggest budget allocation goes towards PSIPs, with MVR two billion dedicated for the projects even in the supplementary budget.

Important aspects of the supplementary budget

- 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

When this year's budget was initially proposed, the government claimed it would be able to save MVR 2.5 billion with its planned reforms. However, with two months to go until year's end, the budget is now exhausted. The current proposed supplementary budget of MVR 5 billion would increase the total budget of 2024 to MVR 55 billion.

When this year began, the state had approved a budget of MVR 49.5 billion.