Gov’t Faces Funding Shortfall for Planned Projects, Says Construction Minister
Minister of Construction and Infrastructure Dr Abdulla Muththalib disclosed that the government has encountered a funding gap hindering the implementation of projects outlined in this year’s budget.
During parliamentary proceedings, Kanditheemu MP Ameen Faisal questioned Minister Muththalib about the progress of ministry initiatives slated for the current fiscal year. Specifically, MP Faisal inquired about the feasibility of commencing budgeted projects within the year.
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In response, Minister Muththalib highlighted that despite the allocation of MVR 49 billion in this year’s budget, a substantial portion relies on external borrowing due to exceeding state revenue. He emphasised the necessity for the Ministry of Finance to secure sufficient funds for project execution, stating, “We are unable to proceed without adequate financial resources, regardless of the budgetary figures.”
- Providing further details, Minister Muththalib outlined the financial requirements:
- MVR 9 billion is essential for the initiation of scheduled projects.
- Over MVR 7 billion is necessary to commence newly sanctioned projects this year.
- Presently, the available budgetary provision stands at approximately MVR 5 billion.
Assuring readiness to proceed once funding is secured, Minister Muththalib affirmed that projects are poised for immediate implementation.
Additionally, Minister Muththalib noted ongoing efforts towards financing the Addu City bridge, a commitment underscored by Regional Airports Company Pvt Ltd President Dr. Mohamed Muizzu during his presidential campaign to connect Addu City’s Hithadhoo and Hulhumueedhoo.
This disclosure underscores the government’s current fiscal challenges in executing planned infrastructural projects amid financial constraints.
