The supplementary budget for 2024 has been resubmitted.

Due to lack of details stipulated in the Finance Act when it was initially submitted, the supplementary budget was sent back by the People’s Majlis for amendments, on Tuesday.

The Ministry of Finance resubmitted the supplementary budget of MVR 6.5 billion on Wednesday.

The supplementary budget was initially presented on October 18.

According to the state Finance Act, if a request is made for parliament to approve any additional amount or a supplementary budget, it should be prepared as specified in the preparation of the budget and placed before parliament one month ahead to the date the budget is required.

The People’s Majlis passed a state budget of MVR 42.84 billion for 2023. However, the finance ministry has projected that MVR 6.509 billion more will be required for the remainder of the year.

The ministry highlighted that while the Finance Act was amended, it was amended to make it mandatory for the presentation of programme budgets.

Noting that the budget was prepared accordingly, the finance ministry stated that the supplementary budget has been sent back to parliament with additional information required.

According to the ministry, the supplementary budget has primarily earmarked funds for expenditure on PSIP, Aasandha and subsidies as well as capital contribution to state-owned companies.

As such, MVR 1.85 billion has been earmarked as additional budget for subsidies, MVR 1.26 billion for Aasandha and MVR 1.78 billion for PSIP initiatives.

The ministry added that this year, PSIP projects were fast-paced and there were expenses more than what was budgeted and many of the expenditure reduction measures planned when the budget was passed were not implemented as planned.

Therefore, the estimated savings from this had declined.