MVR 333 million spent on unbudgeted projects in 2023: Auditor General's Office

The 'Auditor General’s Report on Review of Budget Position Report 2023 and Mid-Term Budget Review 2023 published yesterday has revealed that no financial progress was made on the 672 projects budgeted for 2023, but that MVR 332.86 million was spent on projects which were not budgeted for the year.

The report detailed that projects which did not make any financial progress were all categorised under the Public Sector Investment Programme (PSIP). They were valued at a total of MVR 1,594 million (USD 103.37 million).

These projects include:

- Development of administrative facilities (14 projects budgeted at MVR 49 million)

- Development of the health sector (98 projects budgets at MVR 531.56 million)

- Educational resources (89 projects - MVR 126.81 million)

- Environmental protection (79 projects - MVR 211.83 million)

- Fisheries and agriculture (21 projects - MVR 45.18 million)

- Harbours and transport (67 projects - MVR 179.39 million)

- Housing (8 projects - MVR 69.63 million)

- National security and peace (22 projects - MVR 82.46 million)

- Reclamation and roads (25 projects - MVR 89.83 million)

- Social and religious (211 projects - MVR 120.67 million)

- Water and sanitation system (23 projects - MVR 76.89 million)

- Other (15 projects - MVR 10.92 million)

The report further said that while these projects did not progress, the government had spent funds on 98 projects that were not budgeted for the year 2023. These projects cost the government MVR 332.86 million.

These projects include:

- Development and administrative facilities (1 project - MVR 2.15 million)

- Development of the health sector (8 projects - MVR 64.36 million)

- Educational resources (29 projects - MVR 9.91 million)

- Environment protection (2 projects - MVR 0.43 million)

- Harbours and transport (8 projects - MVR 66.58 million)

- Housing (3 projects - MVR 12.64 million)

- National security and peace (5 projects - MVR 2.93 million)

- Reclamation and roads (4 projects - MVR 110.27 million)

- Social and religious (37 projects - MVR 41.84 million)

- Water and sanitation systems (1 project - MVR 21.74 million)

According to the budget for the year 2023, MVR 8.5 billion was budgeted for PSIP projects. However, by October of 2023, the project expenses were at MVR 9.2 billion, exceeding the budget by eight percent.

The PSIP budget for this year is at MVR 8.9 billion, with MVR 2.1 billion already spent.