The Ministry of Finance has presented a supplementary budget of MVR 6.5 billion to parliament, addressing several pressing financial needs. This supplementary budget is primarily aimed at accommodating additional expenditures in key areas. Firstly, it will cover costs exceeding the initially budgeted amount for the Aasandha program. Aasandha is a government-run health insurance initiative providing essential healthcare services to Maldivian citizens.
Secondly, a notable portion of the supplementary budget is designated to address the increased expenses associated with fuel subsidies. Rising costs in this area have necessitated additional financial provisions.
Furthermore, the supplementary budget encompasses increased project expenditure. Various government projects, essential to the nation’s development and well-being, require additional funding to progress effectively.
As a reference, the existing budget for the year, which was previously approved by the parliament, stands at MVR 42.8 billion. Remarkably, data from the finance ministry indicates that government expenditure had already reached MVR 28 billion by the conclusion of the last month, constituting 83% of the annual budget.
The supplementary budget’s implementation leads to several financial projections as outlined in the Fiscal Strategy Statement issued by the ministry. Foremost, the budget deficit is anticipated to reach MVR 11.5 billion, an equivalent of 10.8% of the country’s Gross Domestic Product (GDP).
In terms of budget financing, the government will necessitate MVR 15.5 billion to effectively fund the budget, covering both regular and supplementary expenses. This inclusive approach ensures that the government can meet its financial commitments and sustain crucial services and initiatives despite unforeseen expenditure increases in these vital areas.