Spending on the government’s Public Sector Investment Program (PSIP) has experienced a substantial decline this year.
According to the Ministry of Finance, MVR 755.9 million has been spent on PSIP projects as of February 22nd, representing a 64.7% decrease compared to the MVR 2.1 billion spent during the same period last year.
This year’s budget allocates a total of MVR 8.9 billion for PSIP projects, indicating that only 8.4% of the allocated funds have been utilized so far. A breakdown of spending reveals that MVR 274.9 million has been directed towards land reclamation projects, while MVR 149.2 million has been spent on water and sewerage projects. Additionally, MVR 72.2 million has been invested in road construction, MVR 43.6 million in harbour projects, and MVR 35.2 million in bridge projects.
Sources indicate that the reduced spending is primarily due to a combination of budgetary constraints and a shift in priorities following the change in government.
