The People’s Majlis (Parliament) has approved the MVR 64.2 billion budget proposed by the government for the upcoming year without any amendments. The total state budget proposed for next year amounts to MVR 64,202,565,720 (Sixty-four billion, two hundred two million, five hundred sixty-five thousand, seven hundred twenty Rufiyaa). This budget also forecasts an income of MVR 40.3 billion for the next year.
The state budget proposed by the government for next year is projected to have a deficit of MVR 9 billion. Furthermore, MVR 8 billion is estimated to be spent on Public Sector Investment Program (PSIP) projects next year. According to the budget estimates, the total expenditure for next year will be MVR 49.2 billion. This includes MVR 39.9 billion for recurrent expenditure and MVR 9.3 billion for capital expenditure.
A significant portion of the proposed budget for next year has been allocated for the repayment of sukuk and bonds. Specifically, MVR 9.3 billion has been included in the budget for this purpose alone, and the government states that after deducting these expenses, the actual budget for next year will be MVR 55 billion.
During the budget review phase, the Budget Review Committee consulted with various agencies and the Ministry of Finance. After these consultations, the committee also approved the budget with amendments that did not alter the overall budget total. Among the amendments passed by the Budget Review Committee was an increase of MVR 3.5 million to the Parliament’s administrative budget from the special budget. It also passed a directive to expedite the construction of an additional government office building to address space constraints faced by state offices and reduce rental expenses.
During the committee stage, the Ministry of Finance proposed solutions to matters raised by independent institutions, taking them into consideration. The Ministry assured the Parliament that if any institution faces difficulties in fulfilling its legal responsibilities, the necessary funds would be secured from within the overall budget. After the committee report was submitted to the Parliament, members debated the report. Following the debate, the budget of MVR 64.2 billion for next year was approved as passed by the Budget Review Committee, with the votes of 74 members. Twelve members voted against the budget.
