Budget committee approves supplementary budget of MVR 5.8 billion for ongoing year

The Budget Committee of People’s Majlis has approved a supplementary budget of MVR 5.8 billion for the ongoing year.

The Budget Committee passed the supplementary budget of MVR 5.8 billion during Friday's Committee meeting.

For 2022, the People’s Majlis approved a budget of MVR 36.9 billion. However, the economical hindrances faced during the year led to the administration proposing a supplementary budget for the year, along with their proposed budget for 2023.

Proposing the supplementary budget to the parliament, Minister of Finance Ibrahim Ameer stated that the 2022 budget was proposed with high hopes of reducing the budget deficit and debt of the government. He highlighted that the challenges facing the world economy due to the ongoing Russia-Ukraine war, especially the rise in oil prices had made the administration spend more than MVR two billion on oil subsidies.

For the 2022 budget, the approved amount for fuel subsidies was MVR 342 million. However, the Finance Ministry now notes that the expenditure of fuel subsidies is expected to exceed MVR 2.3 billion by the end of the year.

Minister Ameer expected the government to receive a total of MVR 24.3 billion as revenue and grants in 2022, including MVR 15.4 billion as tax revenue and MVR six billion as non-tax revenue. MVR 2.9 billion was anticipated to be received in grants and other sources of revenue.