Record budget passed for 2020
Expenditure was increased by an additional MVR366 million.
05 Dec 2019, 9:00 AM
Parliament on Thursday passed a record MVR37.8 billion (US$2.4 billion) budget for 2020 after increasing the proposed expenditure by an additional MVR366 million.
After a month-long review by committee and lengthy floor debates, the budget was approved with 77 votes in favour from the 87-member house. Kaashidhoo MP Abdulla Jabir cast the sole dissenting vote whilst most opposition lawmakers did not vote.
The budget review committee added funds mainly for infrastructure projects under the record MVR10 billion Public Sector Investment Programme. The committee proposed plugging the resulting higher deficit with the sale of more treasury bills than planned.
The deficit was previously forecast at MVR5.7 billion or 5.8 percent of GDP. It is now expected to increase to 6.2 percent of GDP. In addition to selling T-bills and bonds in the domestic market, the government also plans to sell a US$300 million ‘samurai bond’ in Japan.
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