The government has submitted to the parliament a supplementary budget proposal of MVR 6.5 billion, targeting additional expenditures in healthcare, fuel subsidies, and various projects.
This proposal comes at a time when 83% of this year’s initial budget of MVR 42.8 billion has already been utilised. If ratified, the supplementary funding would push this year’s complete financial layout to MVR 48.4 billion.
According to financial reports, the extra MVR 6.5 billion would be utilised to cater to several over-budget areas. These include Aasandha—the country’s healthcare scheme—increased fuel subsidy costs, and additional project-related expenditures.
With this extra outlay, the budget deficit is expected to swell to MVR 11.5 billion, making up 10.8% of the country’s GDP. To finance both the original and supplementary budget, an estimated MVR 15.5 billion will be required.
As of last month, government expenditure stood at MVR 28 billion, accounting for 83% of the MVR 42.8 billion budget for the current year.
Abdul Raheem Abdulla, the Director General of Transition for President-elect Dr Mohamed Muizzu, emphasised that the incoming government has been offered the opportunity to submit input for this supplementary budget, as well as propose figures for the 2024 fiscal year.
The majority party in parliament, and outgoing government led by the Maldivian Democratic Party (MDP), has assured its full support in ratifying the proposed budgets. Mohamed Aslam, the MDP Parliamentary Group Leader and North Hithadhoo MP, clarified that while the party will remain committed to holding the government to account, it does not intend to create obstacles. This political harmony is expected to streamline the budget approval process in the parliament.
The proposed supplementary budget is poised to substantially increase the government’s financial commitments for the current year, reflecting the mounting expenditures on healthcare, fuel subsidies, and other projects.