State budget 2023: Cut back on new projects, MVR 8 billion for PSIP projects

Ground breaking ceremony for the 1000-unit Apollo Housing Project in Hulhumale' on June 15, 2021. (Photo/HDC)

The proposed state budget for the upcoming year has MVR 8 billion allocated for projects carried out under the Public Sector Investment Program (PSIP), alongside which a cut back on new projects have been planned.

Finance Minister Ibrahim Ameer presented an MVR 42.7 billion budget for 2023 to the Parliament on Monday. The projected expenditure is listed as MVR 40.1 billion.

As per the Finance Ministry, the government’s present aim is to complete projects currently ongoing or have been planned – in a manner these projects benefit the economy.

Whilst there is a cut down on new projects – MVR 483.7 million has been allocated for new projects.

MVR 644 million has been allocated in the budget for water and sewerage projects. MVR 82 million has been allocated for development works of the fisheries and agriculture sectors. A significant MVR 1.4 billion has been allocated for land reclamation and road development projects.

MVR 738 million has been allocated for housing projects – and MVR 2.4 billion has been allocated to address difficulties in entering and exiting islands.

Additionally, MVR 1.3 billion has been allocated for environment conservation projects. MVR 190 million has been allocated for matters pertaining to national security.

MVR 67 million has been allocated to develop administrative resources – whilst MVR 288 million has been allocated to develop resources with respect to the education sector. MVR 134 million has also been included for additional expenses.

The government allocated MVR 6.3 million for PSIP project in this year’s budget. Therewith, the MVR 8 million allocated for next year is an increase of two billion.