Price of food and electricity to be dropped next year

Annual State Budget for 2018 has included a portion to reduce the price of food and electricity in the country.

The budget has proposed to increase the subsidy to reduce the price of food and electricity from MVR 150 million to include MVR 200 million for electricy, MVR 50 million for food subsidy along with MVR 10 million in direct subsidy for people who have trouble paying the electricity bill.

The projected budget for 2018 has MVR 1992.4 million included as state subsidy and other forms of aid. The amount is a 2.9 percent increase from the budget of 2017.

Speaking at the Budget Committee of the Parliament, the Minister of Finance and Treasury, Ahmed Munawar said that the government aims to reduce food prices through the State Trading Organization (STO).

Finance Minister said that a high amount was put to reduce food prices and subsidies under the initiative of the President Abdulla Yameen Abdul Gayoom. Minister Munawar said that the details of those will be released through STO very soon.