Sunday 21st Apr 2024
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Development

More Than 50% Of Budget For Development Projects Remains Unspent

The government has not spent 50% of the budget that had been allocated towards development projects for this year.
As per statistics published by the Ministry of Finance, MVR 3.9 billion had been spent between 1 January and 11 November of this year. The budget allocated towards development projects had been MVR 8.4 billion, meaning that as 2021 draws to an end, the Solih administration had only been able to spend 46% of the allocated budget on development project.
It appears that government spending had been lower than expected due to reduced revenue and unexpectedly low foreign aid. Although MVR 2.2 billion had been expected as foreign aid, yet only MVR 500 million had actually been received by the State.
The next year’s budget will, like other budgets of the Solih administration, be large at MVR 36 billion with a deficit of MVR 9 billion. The Auditor General’s Office has stated that it is expected that the budget deficit would grow beyond what had been estimated. The AGO estimates an increased debt of MVR 1 billion, given that the State’s revenues would continue to be reduced in 2022.
The Solih administration maintains that it has initiated and implemented the most development projects in the Maldives. However, the government’s financial data disproves this claim.