MVR 430 million allocated for 2 new subsidies
Financial institutions have always advised the Maldives to manage subsidies better.
By
Ahmed Naif
Two completely new subsidies will be introduced in 2023, for which MVR 430 million has been allocated in the proposed state budget.
Finance minister Ibrahim Ameer's MVR 42.6 billion budget presented to parliament on Monday includes the introduction of two new subsidies for next year. They are:
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1-
Water and sanitation subsidy
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2-
Fishermen's subsidy
The budget for these subsidies is as follows:
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MVR 180 million - For sanitation subsidy
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MVR 250 million – Fishermen's subsidy
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MVR 430 million – Total cost
New subsidies for companies
Giving details of these subsidies, the budget book says that the water and sanitation subsidies are for Fenaka Corporation, meant to cover the cost of maintaining sanitation networks as the sewerage systems in rural areas don't charge anything at present.
According to the budget book, the amount allocated in the budget for fishermen subsidy will be given to MIFCO to compensate for the losses incurred by it due to purchase of fish at a higher price than the market rates. Earlier, it was given as part of the capital allocated to MIFCO. This is for the first time that the amount has been included as a subsidy.
Financial institutions have always advised the Maldives to manage subsidies better, and the budget book also depicted concern over the increase in spending on subsidies year after year. The budget has projected that direct subsidies will exceed MVR 5 billion next year as well.
The subsidies to be given next year are as follows:
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1-
Aasandha Scheme - MVR1 billion
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2-
Power tariff cut - MVR1.3 billion
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3-
Waste management subsidy - MVR 3.3 million
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4-
Transport subsidy - MVR 300.6 million
