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80 percent of state budget will be achieved: Finance Ministry

Fathmath Shaahunaz
09 October 2019, MVT 20:00
The parliamentary budget committee discusses the proposed State Budget for 2019. FILE PHOTO: HUSSAIN WAHEED / MIHAARU
Fathmath Shaahunaz
09 October 2019, MVT 20:00

Ministry of Finance declared Tuesday that 80 percent of the 2019 State Budget will be achieved by the end of this year.

Speaking to the press, the ministry's Chief Financial Budget Executive Ahmed Sarwash Adam stated that the budget allocated for recurrent expenditures will be fully exhausted should state operations proceed at the current speed.

According to Sarwash, the government will spend 15 percent as advance once projects are awarded and underway, which will be reflected in this year's budget. He noted that financing of several projects will commence before the year is out.

To date, the government has launched 42 projects worth over MVR 1 billion, while 136 projects worth MVR 3.8 billion were tendered.

Sarwash asserted that, despite the transparency with which projects are managed, companies which fail the bidding process often filed complaints thus subsequently delaying the projects. He expressed hopes that projects will proceed faster and more smoothly with increased public trust in government systems.

The ministry further estimated that 78 percent of the budget allocated for Public Service Investment Programme (PSIP) will be expended by the end of the year.

While the state budget allocated MVR 7.2 billion for PSIP, the state has so far expended MVR 2.6 billion, with a total expenditure of MVR 19.1 billion. The total budget for this year is MVR 31.9 billion.

The proposed state budget for 2020 must be submitted to the parliament by October 31, as per the law.

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