The government has started reducing the budgets of independent institutions, citing the inability to secure funds needed to finance spending out of the state budget approved for this year.
The Finance Ministry decided to deduct from the budgets of some independent institutions and communicated the decision to officials in charge of the offices, Adhadhu has learned.
Last Saturday, the Finance Ministry summoned top officials from more than 100 offices and informed them of the budget cuts, citing difficulties in financing this year's high-deficit budget.
Adhadhu has obtained a letter with the notification of the budget cuts. As the budget passed for 2024 has a high deficit and difficult financing requirements, the government has decided to deduct a portion of the budgets of state institutions in order to cut costs, the letter stated.
Institutions that faced substantial budget cuts include the Maldives Media Council (MMC) and Maldives Broadcasting Commission (MBC).
Media Council President Ahmed Mustafa told Adhadhu yesterday that the council has received a letter with notification of the budget cut. He did not disclose the exact figure but confirmed that it was a very large amount.
Speaking to Adhadhu, Broadcom President Mariyam Waheedha expressed concern over the disruption of projects as a result of a large reduction in the commission's budget.
Providing details, Broadcom Secretary General Mariyam Zeeniya told Adhadhu that funds allocated for various purposes in the commission's budget have been cut, including training for staff, travel costs, consultancy and research.
"The amount set for our training has been cut. Likewise for consultancy, research. In addition, we travel every year to islands to assess the standard of broadcasting. That is part of our mandate. The amount for that has also been cut," Zeeniya explained.
Insufficient funds in the budget to fulfill responsibilities had been the biggest complaint of independent bodies during the budget review process last year. At the time, Parliament's budget committee increased the budgets of some offices.
Offices and budget increases
- Maldives Inland Revenue Authority (MIRA): MVR 2.2 million
- Employment Tribunal: MVR 2.1 million
- Broadcasting Commission: MVR 351,070
- Tax Appeal Tribunal: MVR 1.8 million
- National Integrity Commission: MVR 825,000
- Islamic University: MVR 5 million
- Family Protection Authority: MVR 900,000
- Children's Ombudsperson Office: MVR 400,000
The changes made to the budget by Parliament's budget committee added MVR 306 million to expenditure and the total budget increased from MVR 49.5 billion to MVR 49.8 billion.
Earlier this year, the Finance Ministry made a public announcement seeking MVR 15 billion needed to plug the budget deficit. However, the ministry's loans and financing list does not show that any funds have been secured so far.
