Maldives governor Sunday urged lawmakers and relevant state institutions to cooperate with the government in making the proposed state budget for next year a 'realistic' one.
Offering her expert opinion to the parliamentary budget review committee on Sunday, Dr Azeema Adam insisted that the state budget was based on estimates and a joint effort of the government and the parliament was needed to implement the proposed measures included in next year's budget.
In that regard, Azeema expressed confidence that the government would succeed in implementing the measures proposed to boost state revenue next year.
"If we can generate the proposed revenue, we can maintain the state deficit at MVR300 million. But the problem is we are only able to achieve it towards the end of the year. Expenses are incurred regardless of revenue. Even this year the deficit ballooned because we weren't able to meet the revenue forecasts. The only resolution for this is to put in an extra effort to generate the proposed revenue at the start of the year," Azeema explained.
"There's no reason why it cannot be done. There are no grounds to say that this is not a realistic budget."
According to the governor, though the government plans to finance the state deficit through T-bill issuance, the liquidity of banks is not expected to be affected.
Highlighting the proposed cut-down of subsidy and universal health care, Azeema said the country's central bank believes that such state relief must be provided to the people who are in real need.
However, the governor expressed concern over the limited higher education, scholarships and training opportunities next year.
The government must maintain focus on human resource development to compliment its drive to develop infrastructure in the archipelago.
Azeema also stressed on the need to conduct feasibility studies before undertaking mega infrastructure projects. She further praised the government's aim to minimize recurrent expenditure as a positive step towards a more stable economy.
