The Parliament’s Budget Review Committee has approved an MVR 49.8 billion state budget for 2024, with the inclusion of an additional MVR 306 million.
The committee members convened for a meeting Thursday, last week, where the budget was approved unanimously by all of its members.
The Ministry of Finance at first proposed a budget of MVR 49.5 billion for the upcoming year.
At the committee review phase, Public Sector Investment Program (PSIP) observed the most notable revision; with its proposed allocation increased by an additional MVR 249 million, bringing the annual total from MVR 8.6 billion to MVR 8.9 billion.
Allocations for some of the projects decreased, while others observed increment. Reclamation efforts of Gulhifalhi, Giraavaru lagoon, and Hulhumale’ saw allocation increment of MVR 400 million, bringing the project’s total value to MVR 600 million.
Following the revision, the budget deficit is forecast at MVR 16.3 billion for 2024.
The committee also gave recommendations to targeted subsidies. The government allocated MVR 600 million for the direct transfer system of subsidies to individual citizens who require them.
The Budget Review Committee further recommended reforms to state-owned enterprises (SOEs) as well.
Budget Allocation Revisions
- K. Maafushi Road Development: from MVR 2.2 million to MVR 7 million
- Expansion of K. Maafushi Hospital: from MVR 3 million to MVR 11 million
- Lh. Kurendhoo Road Development: from MVR 1 million to MVR 7 million
- Development of Jamaluddin School’s Special Needs Classrooms: from MVR 300,000 to MVR 3 million
- AA. Maalhos Road Development: from MVR 500,000 to MVR 2.5 million
- AA. Himandhoo Road Development: from MVR 1 million to MVR 3 million
The allocations for airport development projects have been reduced from MVR 79 million to MVR 60 million.
The committee further removed the MVR 400 million allocation for Fushidhiggaru lagoon reclamation, which is a major campaign pledge of the current President Dr. Mohamed Muizzu; announced with a 20-year plan, envisioning a comprehensive solution to housing difficulties in the Greater Male’ region.
2024 State Budget Breakdown
- Total Budget: MVR 49.8 billion
- Total Revenue: MVR 33.5 billion
- PSIP: MVR 8.9 billion
- Deficit: MVR 16.3 billion
The government also allocated 70% of its budget for recurrent expenditure; which amounts to MVR 34.8 billion.