The proposed state budget allocates MVR 1.3 billion for housing schemes.

While the proposed budget for the upcoming year was presented to parliament on Monday, it has since been forwarded for committee review.

Presenting the MVR 37.5 billion state budget to the parliament floor, Finance Minister Ibrahim Ameer stated that the housing schemes will be introduced in line with the government’s vision to resolve the housing issues facing residents.

As such, MVR 600 million has been allocated for the construction of 20,000 housing units, while a further MVR 359 million has been allocated for the ongoing housing projects; some of which were initiated during the former President Abdulla Yameen's administration.

According to the “Strategic Action Plan” launched by the government, about 20,000 housing units are required to provide shelter for those in need.

The President’s Office earlier revealed plans to reduce the interest that comes with housing loans, adding that discussions are underway to implement this.

Work is currently underway to begin the construction projects of housing units in capital city Malé’s suburban extension Hulhumalé. Further, the government had planned to carry out housing schemes in order to resolve the issue of congestion in the Greater Malé Region.