Foreign budgetary support expected next month: Minister
"The goal is to resolve things in the middle term and save us in the long term. We don't want the indicators to go where we can't control them”.
By
Ahmed Naif
Finance Minister Dr Mohamed Shafeeg has said that more than USD 200 million is needed for budgetary support from abroad to meet expenses for the rest of the year, and that the first amount will likely be received next month.
For the supplementary budget of MVR 6.5 billion allocated by the parliament for the current fiscal year, MVR 4.2 billion (USD 271.9 million) was planned to be raised via foreign souces.
Addressing the Parliamentary Budget Committee last week, Minister Shafeeg said he was very confident that various foreign well-wishers would provide funds to support the new government. The Middle Eastern countries are being approached to raise the money, he said.
"More than USD 200 million is needed. But there are just two months left. We hope to achieve it. We are expecting an inflow of dollars as aid by the beginning of next month," he said.
Noting that external funding is essential to cover this year's expenses, Shafeeg said:
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If the expected funds from foreign sources is not received, then expenditures will have to be reduced
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There is no other way; For that, it was decided to postpone the unstarted projects for the time being
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It is a policy not to start any project without funding approved first
"I also believe that every project is important because it is put in place. But the country's situation is what we have to do in the interest of the country for the time being is to reduce expenditure," Shafeeg said.
He added that it would be impossible to print money to cover expenses and raise more money from the domestic market than currently planned.
"The President has also promised not to print any more. We are getting little by squeezing the private sector so much. So, there is nothing more to be done without cutting costs and bringing reforms," he said.
"This is the time to take action, this is the time. Otherwise, it doesn't seem like we will survive”.
The minister also hinted that the measures planned to cut costs next year may have to be accelerated. Shafeeg said:
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Cost-cutting measures will be accelerated if external funding is not available in the amount expected for budget support early next year
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Electricity subsidy and Aasandha expenditure will be reduced
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Subsidy money will be given directly only to those in need
"We won't be waiting for the end of the year. Even before June and July, if we don't get the money, we will speed up the implementation of expenditure cuts," he said.
"The goal is to resolve things in the middle term and save us in the long term. We don't want the indicators to go where we can't control them”.
