The government has presented a supplementary budget proposal to parliament, requesting approval for an additional MVR 6.5 billion to address increased expenses for the current fiscal year. This move is in response to expenditures expected to exceed the initial budget of MVR 42.8 billion, resulting in a revised budget of MVR 49.3 billion.
The proposed budget amendments include:
- An additional MVR 3.1 billion for total recurring costs.
- An extra MVR 3.3 billion for capital expenditure.
The supplementary budget allocates funds to various sectors, including the Public Sector Investment Programme (PSIP), Aasandha, subsidies, and state-owned companies’ capital contributions. Increased spending in the PSIP and unforeseen expenses have necessitated this additional funding.
Of the supplementary funds, MVR 1.8 billion is allocated for subsidies, and an additional MVR 1.2 billion is assigned to Aasandha, bringing its total expenditure to MVR 2.3 billion.
The rise in capital expenditure is mainly due to increased investments in the PSIP, with MVR 1.7 billion directed toward this purpose.
In addition, the Finance Ministry noted the ongoing preparations for the 2024 budget, with plans to present it to parliament by the end of October in accordance with legal deadlines. The fiscal strategy report outlines an estimated budget of MVR 50.6 billion for the next fiscal year, reflecting a 5.3% increase over the current fiscal year’s budget.
