Review committee approves MVR 30 billion budget

The parliamentary budget review committee, on Saturday, approved MVR 30.2 billion as the annual budget for 2019.

After revising, the initial budget of MVR 29.6 billion presented to parliament was increased.

The committee included additional projects under the Public Sector Investment Programme (PSIP) and increased funds allocated to some of the government institutions.

PSIP: Increased by MVR 452 million

Foreign Ministry: MVR 23 million

Judiciary: MVR 37 million

Higher Education: MVR 50 million

Parliament: MVR 31 million

Family Protection Agency: MVR 1 million

Presidential grants: MVR 1 million

Although these projects are to be funded through foreign aid, many have expressed concerns that the budget deficit would rise as a result of increased expenditure.

Currently, the budget deficit is at MVR 3.7 billion.

According to the research carried out by the committee, the state would receive MVR 300 million more in foreign aid and state revenue than the initially estimated figure of MVR 23 billion.

The budget was passed after implementing recommendations made by members of the parliamentary budget review committee. These include suggestions to make preparations to implement an income tax, continue ongoing domestic airport projects, carry out audit reports for government offices and for large-scale projects.

Chair of the parliamentary budget review committee, MP Ibrahim Shareef stated that the revised budget would be submitted to the parliament on December 2 for debate. A final decision on the budget will be made on December 6.

The 2019 State Budget is the largest budget proposed in the country, and the first submitted during the term of President Ibrahim Mohamed Solih.

If the MVR 30.2 budget is passed, it will supersede this year’s MVR 27 billion budget as the largest passed in Maldivian history.