Parliament Approves MVR 5.1 Billion Supplementary Budget 

The parliament has approved a government-proposed supplementary budget of MVR 5.1 billion, increasing the total 2024 budget to MVR 55 billion.

This additional funding, which brings the initial MVR 49.8 billion budget up, was passed with an overwhelming 75 votes and only 11 against.

advertisement

advertisement

advertisement

The supplementary budget, totalling MVR 5,119,508,129, was submitted to parliament last Thursday and endorsed by a joint committee composed of members from the Public Accounts Committee and the Economic Committee without any amendments.

The Ministry of Finance, which submitted the budget, said that as of September 30, 76% of the original budget—MVR 37.4 billion—had been utilised. In their submission, the ministry highlighted factors contributing to the increased costs, such as underestimation of certain project expenses and delays in fiscal consolidation measures set for July.

The supplementary budget includes MVR 1.5 billion for recurrent expenses, covering salaries (MVR 24.4 million), medical consumables (MVR 200 million), subsidies (MVR 1 billion), and medical aid (MVR 262.6 million).

Capital expenditure will account for MVR 3.6 billion, directed toward public sector investment (MVR 2 billion), state-owned enterprises expenses (MVR 441 million), contingency funds (MVR 650 million), and student loans (MVR 458.4 million).

The state anticipates an additional MVR 759 million in revenue, including MVR 180 million from tax, MVR 379 million from non-tax sources, and MVR 199 million in grants.

However, the supplementary budget will increase the national deficit to MVR 18 billion, representing 16% of GDP, with the debt-to-GDP ratio expected to reach 118% by year-end.