The Transition Committee, on Tuesday, announced its intention to propose a supplementary budget for the upcoming year.
The Co-Chair of the committee, Ibrahim Ameer, stated that the state budget for 2019, which was presented to the parliament earlier the same day, is not sufficient to fulfill all the electoral pledges of President-Elect Ibrahim Mohamed Solih.
Speaking at a press conference held by the Financial Transition Committee, Ameer stated that they did not receive an adequate time period to compile the budget.
Ameer also highlighted the difficulties faced by the financial transition committee in collecting information due to lack of co-operation from government ministries and institutions.
Ameer explained that the committee would receive greater access to information following the beginning of Solih's term, and stated that the supplementary budget would be presented within the first half of 2019.
Despite its shortcomings, the state budget for 2019 will fund certain projects included in Solih's manifesto, including initial undergraduate degrees and provision of breakfast at government schools. MVR 1.2 billion of the state budget is allocated for infrastructure while sewerage systems will be established in 72 islands. MVR 12 million is also allocated for the promotion of tourism.
Ameer stated that the state of national debt was in ‘pandemonium’ with MVR 4 billion from the MVR 29.6 billion budget allocated to repay loans taken over the past five years. Ameer stated that this was a considerable challenge when formulating the budget as it limited funds available to carry out development programmes.
The Chair of the Financial Transition Committee, Mohamed Nashiz, also highlighted that a sum of MVR 1.2 billion in bills incurred during the past five years is yet to be settled.
Nashiz guaranteed that none of the ongoing projects implemented by the current administration would be halted while MVR 4 billion of the budget is allocated for this purpose.
Ameer stated that the goal of the supplementary budget is to ensure a surplus at the conclusion of Solih's five-year-term and bring national debt under control. He also stated that a national development plan would be compiled.
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