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Wednesday 20 Nov 2024
LOCAL EDITION
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LOCAL EDITION
Meedhoo MP Ahmed Siyam Mohamed. (Photo/People's Majlis)
Ahmed Siyam Mohamed, the president of Maldives Development Alliance (MDA), voiced concern over lack of details regarding specific projects in the 2025 projected state budget, adding that he cannot vote to pass the budget while it lacks such details.
The 2025 budget of MVR 56.6 billion was presented to the Parliament by Finance Minister Moosa Zameer on October 31.
During the debate on the budget on Tuesday morning, Siyam, the parliamentary representative for the Dh. Meedhoo constituency, said that his constituents charged him with a great responsibility when they elected him to office – the responsibility to bring the development they are entitled to.
Siyam expressed displeasure that the 2025 budget does not include any details regarding the planned developmental projects.
“I am nearing 21 years serving in this Parliament. This is the first time in my parliamentary career that a budget has been submitted to this Parliament without any details. This budget book does not contain any details regarding developmental projects for my constituencies – Meedhoo, Bandidhoo, Rinbudhoo and Hulhudheli – or any other Maldivian island,” he said.
Siyam said that transparency is the guiding principle in both democracy and trade.
He said that the people need to see what is being done.
“We do not want to wake up to a surprise every day. Therefore, if the allocation for education is MVR 2 billion, we need to explain how exactly this is being spent. We need to explain what is being done in islands,” he said.
“Honorable Speaker, I do not understand how we are supposed to debate on this budget when we do not know what is happening with this. This is not how a budget would be proposed anywhere in the world. This is not how any company would propose a budget either.”
Siyam said the 2025 budget is far removed from principles of democracy, trade and transparency.
He questioned how he, as an elected official, is supposed to answer to his constituents.
“It is not even right to give 100 percent approval to this budget while remaining uninformed. I plead with you, Honorable Speaker, have this budget withdrawn. Withdraw it and have it resubmitted in a manner that we can know what’s what,” he said.
Siyam repeatedly demanded that the budget be withdrawn and resubmitted with details.
He said that he will not vote for the budget, otherwise.
“Speaker. I plead with you. Have this budget book withdrawn. Once it is resubmitted, we can properly debate on this. But, for as long as it remains like this, I will not vote for this budget,” he said.
The main opposition Maldivian Democratic Party (MDP) has also expressed concern over the lack of details in the budget.
Key budget figures:
The projected budget deficit of MVR 9.4 billion for 2025 is the relatively smallest deficit in recent years. It is equivalent to 7.9 percent of the GDP.
The most pressing concern as the Maldives heads into 2025 is the country’s high debt.
Maldives has an external debt service obligation of about USD 600 million due in 2025, and more than USD 1 billion in 2026 – including a USD 500 million sukuk. Top rating agencies Moody’s and Fitch have both downgraded Maldives’ credit rating citing risk of default.
In its recent in its biannual update released in October, the World Bank said that despite Maldives’ economic growth, the increasing public debt and high fiscal spending, particularly for public sector investments and subsidies, remains worrying.
According to the World Bank, the Maldives' total public and publicly guaranteed debt stood at USD 8.2 billion, or equivalent to 116 percent of GDP, in the first quarter of this year. The Finance Ministry estimates it will rise to 118 percent of the GDP at the end of the year.
But despite the concerns, the Maldivian administration has provided assurance it will honor its debt obligations to creditors and investors. It has also implemented measures aimed at alleviating the situation, including reducing the number of political appointees, reforming the Aasandha public health insurance scheme and raising taxes.
The administration plans to roll out more fiscal reforms in 2025, including more Aasandha reforms, and reforms of subsidies, welfare schemes, and State-Owned Enterprises.
