The Ministry of Finance has proposed a USD422 million supplementary budget to cover the expenditures for this year's state budget.
The finance ministry stated it had submitted a supplementary budget to the Parliament in accordance with Article 96 of the Constitution. The article states that the ministry can propose a supplementary budget if the expenditure exceeds the projected estimate in the approved state budget.
The finance ministry stated that the supplementary budget will mainly be spent on Public Sector Investment Programmes (PSIP), national health insurance, subsidies, and capital contributions to state-owned companies. The ministry stated that the productivity for PSIP projects increased during the year and other expenditures exceeded the budgeted amount, adding that the planned expenditure reduction measures have not been properly implemented.
The proposed supplementary budget allocates USD117 million for subsidies, USD78 million for the national health insurance scheme Aasandha, and USD110 million. The Parliament approved a USD2.8 billion state budget for 2023 and the supplement would increase the budget to USD3.2 billion.
Furthermore, the finance ministry stated that next year's state budget is also being drafted and will be submitted to the Parliament before the deadline. The ministry is required to submit the estimated budget for the coming year to the Parliament before the end of October.
In the Fiscal Strategy Report, the finance ministry estimates a USD3.2 billion state budget for next year, based on baseline expenditure, savings from expenditure reduction measures, and new projects and programmes. It is a 5.3% increase over the budget estimate for this year. The finance ministry is drafting next year's budget with the committee appointed by President-elect Dr. Mohamed Muizzu.