The Ministry of Finance has revealed that more than USD117 million has been spent on subsidies in the past three years to control electricity prices.
In a written response sent to the Parliament answering inquiries, Minister of Finance Ibrahim Ameer gave details of the expenditure on subsidies and the total expenditure. He was asked about the total amount spent on electricity price control in the past three years, in the form of subsidies in the budget, the criteria for issuing subsidies to the beneficiaries and the poor, and the priority given to small and medium enterprises (SMEs).
Answering these questions, Minister Ameer gave details on the state budget allocations for the electricity price reduction, water subsidy and price reduction, food price reduction, fuel subsidy, and assistance for running pre-schools. The government is also making efforts to provide staple foods at cheap prices to the public. The finance ministry stated that the amount of subsidies spent from the state budget is more than USD260 million in subsidies in the past three years. He said all subsidies except 0.1% of food subsidies are indirect. Therefore, the subsidy is available to everyone instead of only the poor and needy. Minister Ameer said that the beneficiaries of the subsidy include the rich, foreigners, businesses, and tourists. He said the subsidy given to businesses is also given equally to all eligible businesses.
National Social Protection Agency (NSPA) provides food subsidies to poor families in need of staple food. Families earning less than the national poverty line are considered eligible for the subsidy.