May be difficult to pay salaries unless the $25m from India is received: Finance Minister

Minister of Finance Abdullah Jihad has said that unless the $25 million promised by India is received, paying salaries might be difficult next month.

Speaking at the Parliament’s Finance Committee, the Minister said that the country’s cash flow management is currently ‘extremely difficult’.

He said that a loan of $17 million will be obtained from ADB as budget support in order to pay salaries for this month.

He said that this amount, however, is not enough; and unless the $25 million promised by India is secured, it may be difficult to pay salaries and other bills.

Jihad informed that there are T-bills worth MVR5.3 billion, and a deficit of the same amount will have to be tackled unless the T-bills are rolled over. He also said that T-bills worth over MVR300 million had been received from MMA, and that the Ministry is holding them due to lack of sufficient cash flow.