The projected state budget for 2024 has been submitted to the People’s Majlis.

Ministry of Finance disclosed that they have submitted a budget of MVR 49.5 billion for 2023, to the People’s Majlis on Monday.

The ministry notes that they have also submitted all the relevant documents in accordance with the state monetary and spending laws.

According to Article 96(a) of the Maldives Constitution, the finance minister is required to submit a budget containing the projected revenue and expenditures for the year for approval of the People’s Majlis, alongside a statement of the actual revenue and expenditures for the preceding year, before November 1 at the latest.

Article 211 of the People’s Majlis guidelines reiterates the same.

The official presentation of the state budget for 2024 was scheduled for Tuesday's Majlis sitting. However, the Majlis guidelines does not allow any other work as a no confidence motion has been submitted against the Majlis Speaker, Mohamed Nasheed.

Additionally, Finance Minister Ibrahim Ameer, decided not to attend Tuesday's session on the advice of the Attorney General (AG). The minister took the decision after the AG gave legal advice that no other work could proceed as long as the no-confidence motion against the Speaker of Parliament is dealt with.

At first, the Finance Ministry submitted an estimated state budge of MVR 50.6 billion for 2024.

The statement indicating the fiscal strategy from 2024 – 2026 made public by the Ministry noted that based on the baseline expenses, figures that can be saved from cost-cutting measures and the new projects and programs to be included in the budget, the total budget estimated for 2024 was MVR 50,679.1 million or MVR 50.67 billion.

This figure is an increase of 5.3 percent compared to the budget estimated for 2023.

According to the statistics, expenditure for 2024 is predicted to be at MVR 48,094.9 million or MVR 48 billion.

And while the implementation of the proposed cost-cutting measures is expected to drop the figure to MVR 44,948.8 million or MVR 44.9 billion in 2025, expenditure is expected to increase at an average of 0.5 percent per annum, even in the medium term.

The fiscal strategy statement for 2024 – 2026 further notes that the baseline budget estimated for 2024 is MVR 49,370.7 million or MVR 49.3 billion.

As for recurrent expenditure, a total of MVR 32.7 billion is anticipated to be spent, of which the cost for pension will be MVR 13 billion and MVR 6.8 billion is expected to be spent on subsidies.

In addition, grants to local councils from the next year's budget for recurring expenses are estimated to be MVR 1.9 billion, while other recurring expenses are estimated at MVR 5.4 billion.

The statement indicating the fiscal strategy estimated the state's capital expenditure at MVR 14.9 billion from 2024 to 2026. Out of the capital expenditure, MVR 10.6 billion has been allocated for Public Service Investment Programmes (PSIPs).