Parliament approves the annual budget as proposed!

The parliament approved the annual budget proposed for 2023 by the government.

The annual budget for 2023 was approved by the parliament with 61 members voting yes, with 78.1 percent of the present members approving the proposed budget. Among the 69 members who partook in the vote, only 8 members voted “no” to the budget proposal and since only 35 votes are required to pass the budget, the budget had been approved as presented.

The government proposed a hefty budget of MVR 42.6 billion for 2023. The administration has legislated an increase in tax rates, starting from January 1, 2023, to accommodate the budget, with the approval of the government.

The government estimated MVR 8.4 billion budget deficit for next year. However, the budget deficit is estimated to rise should the state fail to earn the target grant revenue and income.

While the pro-governemnt members applauded the budget during parliament sittings, the opposition members and MDP members of the President Mohamed Nasheed faction argued that the budget will potentially add to the state’s debts.