The government has decided to submit a supplementary budget of MVR 6 billion to parliament on Wednesday, seeking approval for additional spending out of the annual budget, Adhadhu has learned.
A budget of MVR 42.84 billion was passed for the final year of President Ibrahim Mohamed Solih's term. Adhadhu has learned that parliamentary approval is to be sought for MVR 6 billion in additional spending following consultations with the President-Elect's Office.
A senior Finance Ministry official confirmed to Adhadhu that the supplementary budget will be submitted today.
The government was forced to spend an additional MVR 6 billion after spending above budgeted amounts for fuel subsidies, exhausting the Aasandha budget and increasing expenditure on student loans and the tuition-free degree scheme, Adhadhu has learned.
The latest 'Weekly Fiscal Development' report published by the Finance Ministry shows that MVR 487.6 million has been spent in excess of the budget allocated for Aasandha and an additional MVR 732.4 million has been spent on subsidies.
Investment outlays and domestic lending or loans to government comapnies have also exceeded the budgeted amounts respectively by MVR 379 million and MVR 478 million.
According to the report released on September 28, MVR 35.8 billion had been spent out of the budget by then, which was 83.6 percent of the approved total. The Finance Ministry has not published details of government spending since then.
The Finance Ministry is also preparing the annual budget for 2024, which has to be submitted to parliament by a deadline of October 31. The Finance Ministry previously said President-Elect Dr. Mohamed Muizzu would be consulted during the process.
