The Parliament on Thursday approved a record MVR 37.8 billion state budget for next year.
Finance Ministry proposed a budget of MVR 37.5 billion for 2020. The Budget Review Committee increased the proposed budget by an additional MVR 366 million before forwarding the budget to the parliament floor for approval.
The total budget of MVR 37.8 billion was approved with 77 members voting in its favour. Only one member voted against the budget, being Kaashidhoo MP Abdulla Jabir.
The increment of MVR 366 million is focused mainly on infrastructural projects under the Public Sector Investment Program (PSIP). The additional funds will also enhance the budgets of government entities. Therefore, recurrent expenditures are expected to increase. The additional funds will be sourced through the sale of T-bills worth MVR 929 million.
With the increment to the proposed budget, the MVR 5.7 billion budget deficit of the original budget proposed by the Finance Ministry has increased, leaving the archipelago with a budget deficit of MVR 5.9 billion. The increased deficit will be raised through the sale of a US$ 300 million Samurai bond to Japan. The remaining funds will be raised through the sale of T-bills.