Ameer alleges ruse in cost reduction in the budget; forecasts an increase

Ibrahim Ameer, who served as the Finance Minister during the last MDP administration, has alleged that the cost reduction measures in the proposed state budget for next year is a “ruse” and in this trajectory, forecasting a rise in expenditure instead.

Speaking at MDP press conference on Thursday morning, Ameer underscored an unusually high allocation for administrative expenses in the state budget for next year and significantly lower allocations for crucial sectors including economic development.

He detailed that the allocation for housing is 20 percent lower compared to this year’s budget. MVR 3 billion has also been deducted from matters involving public interest such as Aasandha, subsidies and pension. Moreover, he stressed that the proposed budget failed to disclose why funds disbursed in block grants for local councils had been reduced.

Ameer said the opposition was seeing the government waste funds rather than implement cost reduction measures. In this regard, he alleged an increase in expenses incurred for trips, ministries and other offices.

“Even if cost reduction measures are cited in the budget, there is no way to implement this. Increased allocations have been listed for sectors where it was said reductions would be made. This was achieved by a ruse in the math. MVR 3.8 billion has been budgeted for the government’s waste,” he stressed.

Ameer criticized the lack of transparency in the budget.

He also underscored that that budget was an increase of MVR 6 billion compared to the one proposed last year. He forecasted a supplementary budget would be submitted by mid-year.

When presenting the budget, Finance Minister Moosa Zameer said the budget deficit is MVR 9.4 billion, making it the budget with the smallest deficit in recent history. 

Ameer also described this as a “ruse” and in this trajectory, forecasted that next year’s budget will have a huge deficit.