Bilehdhoo Constituency MP Ahmed Mubeen has stated that changes to the subsidy procedures, will have saved the budget MVR 142 million this year.
Speaking in last night's "Raajje Miadhu"program, Mubeen said the budget on subsidies were increasing year on year. He said the Government so far had spent MVR 54 million on subsidies for tourists and MVR 37 million for expatriates.
Therefore, he said with the changes, MVR 142 million can be saved from the state budget and will bring in more cost cutting measures.
"For food subsidies alone the state spent MVR 232 million in 2011, with MVR 281 million in 2012, MVR 301 million in 2013, MVR 332 million in 2014 and MVR 312 million last year. Therefore, from the budget we will be able to save MVR 142 million from this year's budget and a further MVR 170 million in 2017," he said.
With the changes to the subsidies, a rice kilo selling for MVR 3.89 will now sell for MVR 7.96. A kilo of flour will sell for MVR 5.96, which used to sell for MVR 2.89. A kilo of sugar now sells for MR 8 from MVR 4.
The new subsidy procedures will be in place from tomorrow onward, with the Ministry depositing MVR 40 per month to citizens worthy of subsidies.
