A supplementary budget of MVR 5.1 billion has been submitted for parliamentary approval. The supplementary budget was presented to the Parliament on Thursday by Moosa Zameer, who was appointed as the Finance Minister on September 30.
The Parliament approved a total budget of MVR 49.8 billion for this year.
Presenting the budget, Minister Zameer emphasized that the request for additional funding is not due to the exhaustion of the state budget. Instead, he explained that the original budget was poorly constructed, with insufficient allocations for several key projects. The minister noted that the initial budget lacked cost-cutting measures and failed to prepare adequately for the country's financial needs. He also pointed out significant gaps in accounting for 2023.
Key allocations in the supplementary budget:
Public Sector Investment Program (PSIP) - MVR 2 billion
Government-owned companies - MVR 441.4 million
Contingency budget - MVR 650 million
Student loans - MVR 458.4 million
Medical consumables - MVR 200 million
Medical assistance - MVR 262.6 million
Subsidies - MVR 1.02 billion
Salaries and wages - MVR 24.4 million
Minister Zameer explained that the MVR 2 billion allocated in the supplementary budget to enhance the PSIP budget includes funds required for the settlement of outstanding bills from the previous year and the continuation of large-scale development projects, which have progressed faster than anticipated.
The supplementary budget also allocates an additional MVR 441.1 million for government-owned companies, including MVR 150 million to provide capital for the newly established development bank to commence operations.
As required by the Public Finance Act, any proposal for additional funds or a supplementary budget must follow the formal budget preparation process and be submitted to Parliament at least one month before the funds are needed.
