Supplementary Budget is not a good option: Finance Minister

Abdullah Jihad, the Minister of Finance, has said that going for a supplementary budget to provide for government expenditure this year is not a very good option. He said that the government was more inclined to go ahead and complete the year with the budget proposed for the year.

Speaking to Sun Online, Finance Minister said that proposing a supplementary budget would increase public debt and that it would harm the economy. At a time when the budget already prescribed for the year is expected to run a colossal deficit, it would be unwise, according to the Minister to consider a supplementary budget.

“We are facing a revenue shortfall for the budget already passed, and as such, we must try to finance the budget proposed for the year instead of adding another supplementary budget. We are trying to finish the year with the budget that has been given”, said the Minister.

The People’s Majlis passed a budget of 17.1 billion Rufiyaa, and while government revenue was expected to be at 11.48 billion, budget deficit is estimated to be about 3 billion Rufiyaa.

Minister Jihad said that the only way forward was the government to cut down expenditure and find means to increase revenue, and said that the Cabinet was also inclined to such a line of action. He also said that all possible options would be exhausted before proposing a supplementary budget.

The Minister, however, said that the Cabinet had not made a final decision on the matter. He said that the final decision would be made by the Finance Committee of the Parliament. A meeting of the Finance Committee is scheduled for tomorrow, and the Minister is set to attend the meeting to brief the Committee on budgetary problems and issues.