Just MVR 136M left in Aasandha budget

The state has now spent over MVR 900 million from the annual budget for the state health insurance service, Aasandha.

The weekly fiscal development report released by Finance Ministry shows that over MVR 909 million has been spent on Aasandha as of May 11.

With total MVR 1 billion budgeted for Aasandha this year, it leaves just MVR 136 million.

Aasandha has proven to be one of the biggest financial burdens on the state budget since the state health insurance scheme was launched in 2012.

Most years, the budget is exhausted before the end of the year, prompting the passage of supplementary budgets.

AASANDHA 2017-2022:

• 2017: Over MVR 928 million
• 2018: Over MVR 1.49 billion
• 2019: Over MVR 1.43 billion, an excess of MVR 84 million
• 2020: MVR 1.21 billion
• 2021: MVR 1.56 billion, more than the budgeted MVR 950.8 million
• 2022: MVR 1.6 billion, more than the budgeted MVR 730 million

It is highly likely the government will need to pass a supplementary budget again this year.

Top government officials have previously pointed out the lack of discrimination between the country’s rich and poor in providing Aasandha services.

They said they were working on drafting a Social Protection Bill to solve the issue. However, the bill has yet to be finalized.

The high spending on Aasandha also comes after the World Bank advised the Maldivian government to reduce subsidies and expenditure in order to improve the economy. The financial institute advised that fiscal consolidation is necessary to keep debt repayment at a sustainable level.