Minister of Finance Moosa Zameer has stated that the budget allocated for projects under the Public Sector Investment Programme (PSIP) in this year's state budget were not realistic, noting that the contract price of the projects exceed USD 2.3 billion.
Proposing the supplementary budget to the Parliament, Minister Zameer stated that the supplementary budget totalled to USD 330.7 million, due to the increase in expenses for projects. Highlighting that an additional USD 28.6 million was allocated for state-owned enterprises (SOEs), the minister explained that this amount was allocated to secure cashflow for the projects undertaken by the SOEs, and for the recently established Development Bank of the Maldives (DBM). He stated that USD 129.7 million of the supplementary budget is allocated for to carry out PSIP projects, without any halts.
Furthermore, Minister Zameer noted that the previous administration contracted projects and made advanced payments in 2023, while failing to consider the fiscal situation and maintain the sector's expenses at a sustainable level. The minister also disclosed that the supplementary budget was proposed to secure funds for the projects included in this year's under-valued state-budget.
Additionally, Minister Zameer emphasised that the government aims to continue developmental projects without any halts, and fulfilling the pledges made as well.