Mid-term budget for 2010 passed

Parliament has passed a Rf12.7 billion (US$988 million) mid-term budget for 2010, seven per cent higher than the budget proposed by the government.

With the amendments made by the budget committee, additional funds will be allocated to restore civil servants’ salaries to their former levels and increase the budgets of independent institutions.

In his statement to parliament following voting on amendments, Finance Minister Ali Hashim said he fulfiled his legal duty by specifying how the deficit would be plugged in the Rf11.9 billion (US$926 million) budget originally submitted last month.

“But, since the honourable Majlis has so far not shown how the amounts it has added will be financed, I request that you state this before passing the budget,” he said, adding he could not bear responsibility for the economic consequences of an unmanageable deficit.