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Maldives parliament signs off on 26.7 bln budget for next year

Parliament Thursday rejected every budget recommendation and amendments to pass the MVR26.7 billion budget proposed by the for next year.

During the parliament sitting on Wednesday, lawmakers from the main opposition Maldivian Democratic Party (MDP) proposed 17 out of the total 18 amendments to the budget report.

Most of the amendments looked to increase government provided allowances.

However, the government controlled parliament shot-down the amendments to pass the budget with 60 lawmakers voting in favour out of the 77 present during Thursday's sitting.

The budget has been passed after the parliamentary budget review committee had also signed off on the budget without any amendments.

The committee however had tweaked 21 infrastructure projects proposed by the government without altering the total allocation for the Public Sector Investment Program (PSIP).

The government had capped spending with 38 percent on social development programs, 13 percent on economic development, 27 percent on public service provision, 22 percent on debt servicing and developing a sovereign development fund.

Revenue forecast for next year is MVR21.9 billion, which includes MVR14.1 billion in taxes, MVR4.8 billion in non-tax revenue, MVR876 million as grant aid, and MVR2 billion from new revenue-raising measures.

Government had looked to curb recurrent expenditure, allocating 60 percent on PSIP.