Maldivian Parliamentary Committee Aims to Finalize Budget Review by November 20, Appoints New Leadership

The Maldivian Parliamentary Standing Committee on Budget Review announced a target date of May 20 to complete its review of the MVR 56.6 billion union budget proposed for the next fiscal year. The committee, which convened on Monday to establish a review timeline, also appointed Fuvahmulah Central MP Ali Fazad as the committee chair and Eydhafushi MP Ahmed Saleem as vice-chair.

As part of the review process, the committee will request detailed financial statements from the Auditor General's Office and the Central Bank by November 20, providing additional oversight of the proposed allocations. The committee also plans to gather budget details from autonomous bodies for a more comprehensive analysis of expenditure by individual offices.

The proposed budget for the upcoming year includes MVR 49.2 billion in expenditures, comprising MVR 35.9 billion in recurrent costs and MVR 13.3 billion in capital expenditures. Key highlights include MVR 3.9 billion earmarked to address the nation’s debt, MVR 378 million for capital investments in state-owned enterprises, and MVR 3.2 billion allocated for government loans, including a MVR 1 billion provision for housing loans at a 5% interest rate.

The budget projects a deficit of MVR 9.4 billion, representing 7.8% of GDP. The primary deficit, calculated at MVR 3.8 billion, accounts for approximately 3.2% of GDP, raising concerns over fiscal sustainability amid increased spending demands.