MVR 59M allocated in supplementary budget to reduce cost of electricity, air transport

An additional funding of MVR 59.4 million has been allocated in the supplementary budget towards fulfillment of two of President Ibrahim Mohamed Solih’s electoral pledges; reduction in cost of electricity and reduction in cost of domestic air travel.

Finance Ministry has requested the Parliament to approve a supplementary budget of MVR 1.7 billion to cover the additional expenditures projected for the year.

Funding has been allocated in the supplementary budget for several of the President’s electoral pledges, including MVR 300 million on student loans and scholarships.

Finance Ministry has also allocated MVR 35 million to Island Aviation to reduce the cost of domestic air travel, and MVR 24.4 million to State-owned enterprises to reduce the cost of electricity.

An additional MVR 81 million has been allocated for the school breakfast program – another one of the President’s electoral pledges.

Finance Ministry has also set aside MVR 225 million a budget contingency to cover unexpected expenses.

The supplementary budget, if passed by the Parliament, will increase the annual State budget to MVR 32 billion, and increase the budget deficit to MVR 4.9 billion.