Proposed budget fails to outline repayment plan for MVR 7 billion in outstanding state debt: Niyazy

Auditor General Hassan Niyazy has stated that the state has 7 billion Rufiyaa in outstanding unpaid bills, noting that the budget fails to clarify how these obligations will be settled.

Speaking at a meeting of the Parliament's Budget Review Committee, Niyazy stated that the outstanding government payables include significant sums owed to various state-owned enterprises as well as numerous private businesses.

The Auditor General has expressed concern, noting that no budgetary provisions have been made for these payments.

The Auditor General stated that Parliament must seek clarification from the relevant authorities regarding whether a clear plan exists for the repayment of these funds.

The Auditor General stated that it is crucial for the Ministry of Finance to identify viable mechanisms for the repayment of these funds.

Furthermore, the Auditor General stated that approximately MVR 22 billion in tax revenue owed to the state remains uncollected. He noted that the government's failure to settle outstanding payments to private companies is a contributing factor to the rise in tax defaults.

Business owners have previously highlighted that the state's failure to settle outstanding payments has caused significant challenges for their operations. According to these entrepreneurs, the ongoing delays are resulting in substantial financial losses and undermining the fiscal stability of their businesses.

At a time when the gap between state expenditure and revenue continues to widen, the increasing difficulties in meeting the government's financial obligations are a matter of serious concern.

As part of the government's efforts to improve the state's financial position, measures include allocating funds in the budget to settle outstanding payments and ensuring that tax-delinquent parties fulfill their obligations.