MVR 2.1 billion as capital injection for SOEs

With the MVR 440 million allocated in the supplementary budget proposed to parliament by the government yesterday, the expenditure from State budget on State Owned Enterprises may reach MVR 2.1 billion.

As per this year's budget, MVR 1.7 billion was set to be spent on SOEs. However, with the supplementary budget proposed yesterday by Minister of Finance Moosa Zameer, this number sees an increase.

This is due to the allocation for projects run by SOEs and capital injection, as well as subsidies set for companies.

At present, there are 30 companies that the government holds shares in. Of these, 40 percent are operating at profit. Only about 10 companies from this operate within corporate governance standards.

According to statistics shared by the Privatization and Corporatization Board (PCB), MVR 1.69 billion was received by the State in the first quarter of the year as profit from the companies, which is 20 percent less than the same period last year.

The government has now planned measures in order to lower expenditure on SOEs as well. As such, some companies are set to be merged, while others are to be liquidated.