New govt can’t function without supplementary budget: Ameer

The new government will also be able to run the state and pay off its debt to the private sector by passing a supplementary budget, Finance Minister Ibrahim Ameer said on Thursday.

One of the questions raised by members of the Budget Review Committee of the Parliament was about the debt inherited by the new government from this government. Especially with the term of this government expiring on Friday.

The Finance Ministry has presented a supplementary budget of MVR 6.5 billion. Meanwhile, members of parliament's minority party, The Democrats, who oppose the budget, have already accused the government of trying to "strangle" the new government.

Maafannu Central MP asked Ameer whether the government would be able to pay the money to private companies after passing the supplementary budget.

Noting that the companies have implemented government projects at their own expense, the member said the cash flow of the companies has been withheld due to non-disbursement of funds by the finance ministry.

"More than 250 companies and suppliers, private companies, have money accrued by the government. Will they get the money when this supplementary budget is passed, any of it?," Rasheed asked.

"I want to clarify if this is something that elevates the next government. This government is over. So, will the passage of this budget be enough to clear the dues to them?"

In response, Ameer said it would not be possible for the new government to pay the companies without passing the supplementary budget.

“With the supplementary budget, we will have that opportunity [to pay companies], we will have budget space, we will have budget to allocate money for projects that have been implemented,” he said.

The minister said the supplementary budget has not been passed and there is a delay in the release of funds by the finance ministry.

"Even now, for example, fishermen have to be paid. That too has not been done now because the supplementary budget has not been passed and it is difficult to find space," he said.

The minister said the issues would be resolved with the passage of the supplementary budget.

"The new government will come and have that opportunity. The Maldivian government will always move forward. Only the people in the government are changing," he said.

The Committee on Thursday approved the supplementary budget of MVR 6.5 billion as proposed by the Finance Ministry. The committee further recommended that MVR 6.5 million be allocated as part of the budget for broadcasting service providers and media as requested by President-elect Mohamed Muizzu.