Ministry of finance said MVR 73 million was spent on various projects that was allocated for in this year’s state budget.
In the Fiscal Expenditure Statement for 2024-2026 released by the ministry, it was reported that they have to undertake unbudgeted expenditures due to projects being started with poor planning.
Every year, the state budgets development projects that are needed to implement the government’s policies. The approved budget can be amended if the president requests for it. Otherwise, a project can only be added when the budget is being approved.
The ministry of finance said that budgetary projects need to be changed so much because ministries streamline the budgets in a phased manner while preparing for projects. They said, issues also rise as ministries fail to plan projects properly prior to starting them.
According to the ministry, introduction of new projects outside the budget makes it difficult to meet the expenditure required for the project that was planned earlier as well.
The report further details that the lack of adequate budgetary allocation for projects is also an issue caused by budgets being formed without considering the changes that may occur to the project implementation plan and the financial plan. The ministry then has to bear the additional expenses from the ministry budget allocated for "miscellaneous".
The ministry is already working with the World Bank to strengthen the public investment sector. They are also in the process of putting in place a standard costing mechanism to address the "over-budgeting" issue.
The ministry of finance is currently working on preparing the state budget for 2024, along with the administration that will be sworn into office on November 17. The law states the budget for the next fiscal has to be sent to parliament by the end of this month.
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