Budget projected $200 million in funding, but only $80 million was secured: Aik

Legal expert Aik Ahmed Easa has stated that while the current 2024 state budget projected a revenue of $200 million, the government has only managed to secure $80 million to date.

Speaking on RaajjeTV’s "Fala Surukhee" program, Aik stated that the $80 million currently available to the government consists of funds secured by the previous MDP administration to finance various projects. He further noted that the current government appears to have no strategy to address the 120 million rufiyaa deficit.

In this year's proposed budget, the government allocated approximately $200 million to be secured in funding. However, they have only managed to obtain $80 million, which is less than half of the required amount. Furthermore, this $80 million consists of funds previously secured by our MDP administration to finance specific projects. The current government remains clueless on how to bridge the remaining $120 million deficit.

Aik Ahmed Easa

Commenting on the amendments to the foreign exchange regulations, Aik stated that the government's primary objective behind these changes is to forcibly extract missing dollar liquidity from the local market.

Aik stated that despite a decline in the state's dollar revenue, government expenditure continues to rise. He further noted that while the state is receiving more foreign currency, the public is facing increasing difficulties in accessing dollars.

Aik has raised questions regarding why the public continues to face difficulties in accessing US dollars, despite the significant foreign currency revenue generated by the Maldives' tourism sector.

Noting that citizens traveling abroad are currently limited to obtaining only $500 at the official bank rate, Aik highlighted that this amount is insufficient for Maldivians. He further stated that as long as dollars are available in the market, citizens must be granted the opportunity to purchase them.

During the first two years of President Dr. Mohamed Muizzu’s administration, the value of the US dollar has surged significantly. This spike has led to an increase in the cost of goods and services, leaving citizens facing immense hardships—particularly those traveling abroad for medical treatment who are unable to access foreign currency. Despite these challenges, the government has yet to take effective measures to address the issue.