The Parliament Budget Committee has approved the MVR 56.6 billion budget for 2025, with no revisions, contingent on the government providing detailed project information to Parliament. The approval came after a vote in which 15 of the 19 committee members supported the budget.
This budget marks an MVR 1.6 billion increase compared to this year's budget, which includes a supplementary component that raises the total to MVR 55 billion.
Key Figures from the 2025 Budget:
- Total Budget: MVR 56.6 billion
- Projected Revenue: MVR 39.8 billion (including MVR 2.6 billion in free aid)
- Public Sector Investment Program (PSIP): MVR 12.4 billion
- Recurrent Expenses: MVR 36 billion
- Deficit: MVR 9.4 billion
- Projected GDP Growth: 6.4%
Recommendations by the Committee
Deputy Speaker Ahmed Nazim emphasized the lack of project details in the proposed budget and suggested conditions for approval:
- Sort PSIP programs according to specific criteria.
- Provide a list of projects scheduled for completion by February 2025.
- Submit detailed project plans, including signed agreements, by March 2025.
- Deliver quarterly project progress reports to Parliament.
State-Owned Enterprises (SOEs)
The Committee urged reforms within SOEs to reduce dependence on state funding. Recommendations included:
- Merging loss-making companies with profitable ones.
- Dissolving consistently unprofitable entities.
- Submitting quarterly updates on reform progress and efficiency improvements.
Tax and Subsidy Reforms
The Committee proposed:
- Reviewing MIRA’s enforcement of the Tax Act against defaulters.
- Amending the Administrative Taxation Act to address current challenges.
- Identifying inefficiencies in subsidy targeting and presenting an implementation schedule to Parliament.
With these conditions, the 2025 budget aims to ensure greater accountability, efficiency, and transparency in public spending while addressing key socio-economic challenges.
