Budget sent to Parliament for revision following difficulties

Ministry of Finance has sent the MVR14-billion budget for 2012, previously passed by the Parliament, to Parliament Finance Committee for approval for revision.

Members of Finance Committee discussed the revisions proposed by the Finance Ministry at the meeting held yesterday.

The Finance Committee met for the first time yesterday after being in recess.

The most serious discussions took place in relation to Finance Ministry’s proposition to transfer money from Salary Contingency budget and PSIP Contingency budget to General Contingency budget.

The Contingency budget is made up of three items; General Contingency, Salary Contingency, and PSIP Contingency.

MVR50 million per item had earlier been approved by the Parliament, making total Contingency budget MVR150 million.

Committee Chairperson Dhiggaru MP Ahmed Nazim said while presenting the case to the Committee, that the amount that remains in the General Contingency budget for the rest of the year is MVR6 million, which means that money has to be transferred to General Contingency budget to allow the government to make the necessary payments.

“I put this issue on the agenda because the Finance Minister called me, and said that it needs to be resolved urgently,” Nazim said.

Citing the Minister, Nazim said that budget difficulties are being faced due to having to incur extra costs as a result of the arson attacks on several buildings in Maldives on 8 February.

However Committee members of Maldivian Democratic Party (MDP) said that the transfer can be approved as long as the total amount remains the same, but details of expenditures up to now, as well as planned expenditures must be presented to the Committee. Some members also raised doubts about whether the Committee has the authority to grant this approval to Finance Ministry.

“There are legal issues involved here. If we approve, the Minister will say that it was approved by the Finance Committee. We will be held responsible. Therefore we must be fully informed before we do this,” Ilyas Labeeb said.

Pro-government members said that the issue must be approved immediately to prevent losses to the State.

“We should do our best not to obstruct the Minister’s efforts,” newly-joined Committee member Abdullah Jabir said.

Due to difference in opinions, the Chairperson initiated a conference call with a senior official of Finance Ministry. The official said that money must be transferred to the General Contingency budget as there are outstanding payments to several Councils.

In spite of opinion differences and unanswered questions, the decision was made to approve transfer of the remaining 25 percent to General Contingency budget. However more money can only be included in the General Contingency budget after details of the expenditures are presented to the Committee.