Subsidies for food, electricity to increase

The Government has proposed to increase subsidy budgets for food and electricity.

Proposed budget for 2018 showed that subsidies for electricity was increased to MVR 200 million from MVR 150 million. This includes a direct subsidy of MVR 10 million for those individuals who cannot afford to pay bills. Subsidies for food staples had increased by MVR 50 million. Additionally, MVR 16.2 million was set as living allowances for impoverished.

A significant number of projects were set in the Public-Sector Investment Program (PSIP). As such, majority of PSIP is set for developing transportation sector, closely followed by sanitation and housing.

In the budget for next year, MVR 2.7 billion is set aside for 75 projects to resolve transportation issues. This amounts to 38 percent of PSIP and includes provisions to create four domestic airports, creation of 63 ports and China Maldives Friendship Bridge project.

MVR 1.1 billion was set aside for 57 water and sanitation projections; this amounts to 15.5 percent of PSIP. This includes 35 sanitation projects, 14 water networks and eight water and sanitation projects.

MVR 805.2 million or 11.4 percent of the PSIP is allotted for housing. This includes 6000 housing units built under contractor financing procedure.