Gov’t Exceeds PSIP Budget with MVR 12.1 Billion Expenditure Last Year

The Maldivian government’s expenditure on public sector investment programme (PSIP) projects surpassed expectations last year, with the finance ministry reporting an outlay of over MVR 12.1 billion. This figure significantly exceeded the MVR 10.3 billion earmarked for PSIP projects in the approved budget, marking a 17.4 per cent increase.

PSIP, a medium-term plan integral to the development of the Maldives, prioritizes projects aligning with the government’s policy objectives. The recently released Weekly Fiscal Development Report by the ministry revealed that as of December 28 last year, MVR 12.1 billion had been allocated to PSIP, while the anticipated spending for 2022 stood at MVR 8.9 billion.

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The last year’s expenditure predominantly focused on key sectors such as transportation, road construction, land reclamation, and port construction projects. The breakdown of major expenditures under the PSIP includes MVR 2.1 billion for land reclamation projects, MVR 1.6 billion for airport development, MVR 1.5 billion towards water and sanitation systems, MVR 1.4 billion for road construction, and MVR 1.1 billion for port construction.

Looking ahead, the budget for the current year earmarks MVR 8.9 billion for PSIP projects, with significant investment planned in projects aimed at addressing infrastructure shortages. These projects encompass bridge construction, further development of airports, and enhancements of port facilities, with a budget allocation of MVR 3.3 billion.

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