2023 Budget: MVR 42.8 billion passed by Parliament

Parliament of Maldives | Photo: Majlis

Malé, Maldives – Parliament of Maldives has approved the government’s budget of MVR 42.8 billion for next year.

The budget was passed by 61 votes out of 69 in the parliament. Eight members voted against the bill.

The government has proposed a budget of MVR 42.7 billion for next year. After studying the budget, the Parliamentary Budget Committee passed a budget of MVR 42.8 billion with amendments.

The committee has proposed to give special attention to the recovery of MVR 161 million as aid and give priority to recover the money from tax defaulters. The committee also recommended that a supplementary budget be submitted without delay.

The budget for 2023 has been passed without adopting any amendments recommended by the opposition and some MDP MP’s. The main amendments proposed by the opposition were to reduce wasteful government expenditure and include the liquidation of some companies and the money to be allocated to them to be spent on other things.

Among the MDP members, some members on Speaker Mohammed Nasheed’s side also proposed amendments to the budget. It is to detail the components proposed to be added to last year’s budget separately, the amount received by government companies and the recipients of fuel subsidy separately. The amendment also proposed to include in detail the amount of capital allocated to government companies from the special budget.

However, no amendments were passed. The amendments were rejected today without the support of many MDP members as well.

In addition to next year’s budget, the committee also approved a supplementary budget of MVR 5.8 billion for the remainder of this year. The proposed budget increases include the Thilamalé bridge project, Addu City road construction project, fuel subsidy, SIFCO housing project and Aasandha insurance.

On the proposed state budget, Finance Minister Ibrahim Ameer has said next year’s budget is a credible roadmap based on the good experience of the past, which will enable the government to continue to contribute to the prosperity, social health and security of the people.

The government is expected to receive MVR 32.1 billion in total revenue and grants next year, including MVR 3.7 billion expected to increase due to the GST hike. Tax revenue is expected to be MVR 23.5 billion while non-tax revenue is expected to be MVR 6.4 billion.