Parliament passes MVR 56.6b budget without project details
Government debt is projected to reach MVR 150 billion by the end of 2025, amounting to 124.8% of GDP.
Parliament on Wednesday approved the government’s proposed MVR 56.6 billion budget for 2025 without amendments.
The approval followed the removal of conditions outlined in the budget review committee's report.
The final vote saw 70 members in favour of the budget, while 11 members from the Maldivian Democratic Party (MDP) opposed it.
An amendment to delete conditions requiring detailed project submissions was introduced by Manadhoo MP Husni Mubarak and supported by Velidhoo MP Mohamed Abbas. The amendment passed with 68 votes in favour and 11 against, all from MDP members.
The budget committee had proposed the following conditions, which were removed:
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Submitting a list of Public Sector Investment Programme (PSIP) projects to parliament by February, detailing project distribution and implementation status.
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Providing signed project details by March.
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Submitting quarterly status reports on ongoing projects.
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Quarterly updates on measures to reduce the reliance of state-owned enterprises on the government budget.
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Strengthening tax compliance through expedited amendments to the Administrative Taxation Act and improving enforcement against tax evasion.
The MVR 56.6 billion budget is projected to generate MVR 39.8 billion in revenue, resulting in a deficit of MVR 9.4 billion, equivalent to 7.8% of GDP.
Funding measures for the budget include:
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Borrowing MVR 5.1 billion from foreign sources.
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Securing MVR 6.6 billion in foreign budget support.
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Raising MVR 5 billion from the domestic market.
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Utilising MVR 2 billion from the sovereign fund.
Government debt is projected to reach MVR 150 billion by the end of 2025, amounting to 124.8% of GDP.
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