Male’, Maldives –The Finance Minister of Maldives, Ibrahim Ameer has stated that it is crucial for the State Budget to pass without any amendments.
Minister Ameer said that it is very important for the State Budget to pass without any changes if the country wishes to recover from the indebted situation it is currently facing. This is why, Minister Ameer personally requested all the Parliamentary members to pass the proposed State Budget as it is.
The Finance Ministry of Maldives announced that the 2021 budget will be MVR 34.7 billion, however, several parliamentary members, including the members from the incumbent MDP party have widely criticized the proposed budget.
At the Parliament, Minister Ameer said that on the account that the responsibilities of the Financial expenses will be taken, Minister Ameer said that the fiscal strategy paper of the upcoming mid-term was handed to the parliament on July 31, and said that the fiscal strategy paper will contain detailed information of the upcoming developmental changes the country will undergo, along with changes in the PSIP, expected profit and the risks in the debts the country owes.
Minister Ameer said that the fiscal strategy paper would show that it was initially intended to propose a far bigger budget compared to what has been proposed now. However, Minister Ameer noted that if the members read the paper, it will be clearly visible that the current budget was proposed after reducing the expenses and after considering the situation that the country is currently facing compared to how it was in at July 31.
The Finance Minister also highlighted that the State Budget for the year 2021 was decided mainly after considering that the country needs to overcome the loss the economy is currently facing as soon as it can. He further added that without focusing on the growth of the economy, the government will not be able to generate profit, and that without profit, the rate that the country repays its debt would be slower.
The aim of this budget is to further grow the economy of this country”Minister Ameer stated.
Along with the parliament members, Speaker Mohamed Nasheed also spoke about the proposed state budget for the year 2021. He said that he also agrees that the proposed budget for the upcoming year is not good at all. However, Nasheed said that the previous government is to be blamed for this as it is the consequence of their actions and not of the incumbent government.
The Finance Minister of Maldives, Ibrahim Ameer previously during a Parliament sitting that the Maldivian debt is estimated to be MVR 82.8 billion at the end 2021. He said that although the government is doing everything they can to speed up the recovery of Maldives’ economy, a side effect of the current attempts at economic management is an increase in debt.
The lates National Debt Report complied by the parliament showed that the national debt of Maldives has added up to a whopping MVR 172 billion.