The Auditor General's office has expressed concern over the mismatch between the government's fiscal strategy and the budget proposed for next year.
In its recommendations to the budget, the audit office noted that some measures proposed for cutting costs and raising revenue in the 'Fiscal Strategy Statement' published last July have not been included in the budget.
Revenue raising measures from the fiscal strategy that are absent in the budget include dividends to the government from an integrated tourism project in Kaafu Gaafaru by the Maldives Fund Management Corporation (MFMC), and the sale of carbon credits in the world market after protecting marine areas with mangroves and sea grass and calculating their level of carbon sequestration.
Neither project has commenced so far.
Raising concern, the audit office said it was important for measures proposed to raise revenue for the state to be carried out with a plan for execution and a mechanism for accountability.
Among absent cost cutting measures, the audit office noted changes proposed to Aasandha coverage, which were in the fiscal strategy but not included in the budget.
Aasandha is currently one of the biggest strains on the budget. Expenditure exceeded budgeted amounts annually without exception in recent years.
A policy proposed in the budget for minimizing over-use of Aasandha states that costs could be reduced, but details of the policy were missing, the audit office said.
While the budget estimated that MVR 492.9 million could be reduced from Aasandha, the audit office warned that expenditure would rise again if the policy is not implemented.
As measures proposed in previous years to reduce Aasandha spending had not been implemented, the audit office recommended drawing a schedule and setting up a mechanism for monitoring and accountability.
