The recommendations from the Auditor General's office for the supplementary budget have revealed that more than what was allocated in the budget for the current fiscal year and the supplementary budget was spent on providing fuel subsidies till the end of last month.
In the budget for the current fiscal, MVR 775.5 million was allocated for fuel subsidy. In the supplementary budget, MVR 589.9 million was included for fuel subsidy. After combining the figures, the budget for the entire year's oil subsidy was MVR 1.3 billion.
However, as of last month, MVR 1.5 billion was spent on fuel subsidies, according to the Auditor General's office. The office said this while citing the numbers in the SAP system, which maintains state expenditure accounts. This means it would cost MVR 219.8 million to provide fuel subsidy beyond what was budgeted even after including the supplementary budget.
The Auditor General's office raised these concerns with the budget review committee.
"In view of these factors, it appears that the grant and subsidy amount proposed to be increased have been spent in excess of the budget approved as of September. It is important to note the amount paid as the actual cost of fuel subsidy. The SAP system shows that MVR 1.5 billion has been spent," Audit Office Director Mohamed Shan told the committee.
While the audit office has said the government spent more than the approved budget, Finance Minister Moosa Zameer has been stressing that it is unlawful to spend more than the budgeted amount.
He claimed that, unlike the previous government, the current government spends after getting Parliament approval for the supplemented amounts.
