The Finance Ministry has stated that the proposed supplementary budget of MVR 5.1 billion will increase the total budget for this year to MVR 55 billion.
Presenting the supplementary budget at Thursday’s parliamentary session, Finance Minister Moosa Zameer emphasized that the request for additional funding is not due to the exhaustion of the state budget. Instead, he explained that the original budget was poorly constructed, with insufficient allocations for several key projects. The minister noted that the initial budget lacked cost-cutting measures and failed to prepare adequately for the country’s financial needs. He also pointed out significant gaps in accounting for 2023.
According to the Finance Ministry, the addition of the supplementary budget to the existing MVR 49.5 billion approved budget for this year brings the total budget to MVR 55 billion. With this increase, the projected budget deficit will increase from MVR 16.3 billion to MVR 18.4 billion.
The ministry said the budget revenue is now expected to reach MVR 36.4 billion, while recurrent expenditure will total MVR 36.3 billion. Capital expenditure has been revised to MVR 19 billion, and budget financing will also stand at MVR 19 billion, which includes MVR 1.4 billion in foreign loan assistance and MVR 3 billion from the domestic market.
Additionally, the supplementary budget will increase the amount allocated for student loans to MVR 1 billion and corporate expenditure to MVR 2.1 billion.
