Revised budget to be presented on Monday

Minister of Finance and Treasury Abdulla Jihad has said the State budget for 2014, revised to fit the objectives of the new government, will be presented to Parliament on Monday.

Speaking at the Parliament budget review committee today, Finance Minister said the goals of the budget proposed at the end of October significantly differs from the objectives of the new government and that a revised budget will be proposed on Monday.

“New government has certain promises. We have to evaluate the cost of these new promises. The work on this underway. We’ll be able to finish in about five days,” Minister Jihad told the parliamentary committee.

He said President Yameen has directed him to reduce government recurrent expenditure by MVR 1 billion and noted that the government needs the parliament to approve key projects to finance the budget. The proposed projects are the same projects proposed last year, Jihad said, and if parliament approves the projects, government will be able to increase revenue by MVR 2.2 billion.

Finance Minister said the current government is determined to reduce expenditure and that increasing subsidies will only increase the government's expenses.

In terms of salaries, Jihad said the government has reduced the allocation for overtime salaries to 5 percent and non-practice allowances have been maintained at 35 percent, of the overall budget. He said the new budget also proposes for subsidies to be delivered to specific targets.