Majlis passes MRF 12.7billion budget, MRf 800 million more than proposed by Govt.

Friday, December 25th, 2009

hashim3Finance Minister says he cannot be responsible for what exceeds expected income

The Peoples Majlis after long debates has finally passed the Governments proposed medium term budget for 2010. The Budget amounting to MRf 12.7 billion was passed yesterday evening after Finance Minister Ali Hashim made his remarks in response to the Report of the Budget Committee and comments of Members and their proposals in the final round of budget debate. With amounts recommended by the Budget Committee and proposals from members, the Majlis added a sum of MRf 800 million making a total of MRf 12.7 billion for the Government Budget for 2010. 75 members present at the closing meeting voted for the Budget.

The Majlis has added MRf 166 million to the budgets of independent institutions out of which MRf 105 million will go the budgets of Judiciary, MRf 617 million to pay full salaries of the civil service employees, MRf 100 million for subsidy to fishermen, MRf 50 million for subsidy to farmers, MRf 4 million as subsidy to media. The Majlis has also decided to pay a monthly allowance to those who have learnt Holy Quran by heart.

Minister Ali Hashim in his remarks told the Majlis the Budget was planned according to the expected revenue of the Government and in keeping with the recommendations of IMF World Bank and ADB. The Budget was aimed at reviving the economy of the country. He said it will be difficult to get aid from these agencies if the budget exceeds expected revenue. The Minister also said the Finance Act requires the Minister to find the means to finance the deficit, if there is one. He therefore referred to the additional amounts added to the Budget by the Majlis and asked the Majlis to ascertain how the additional expenditure are to be financed. He implied he has a responsibility by law and unless he is informed details of how the revenue for additional expenditure added to the Budget, he cannot be responsible for the additional expenditure.

The Minister in reference to the recommendation of the Budget Committee to add a sum of MRf 617 million to resume paying full salaries to the civil service employees, said it was the same understanding the Government had from the discussions with the Civil Service Commission to pay full salaries to civil service once Government revenues climbs MRf 7 billion. He also explained that the money allocated in the revised budget for reconstructing houses in M.Koluhufushi and Thaa. Madifushi was allocated to buy back shares of MWSC and that was explained earlier and the money required for these two islands have been obtained.

Ali Hashim said the Government will be submitting the information requested by the Majlis and requested it to speed up the two bills on corporate tax and tourism GST tax in order to raise the necessary finance for the Budget. During the presentation of the Budget Report, Chairman Diggaru constituency Member and Deputy Speaker Ahmed Nazim said Ministry of Finance and other Government institutions provided all the information requested by the Committee. He however mentioned independent commissions have made serious complaints that they do not have any financial freedom and the Government was treating them unfairly. Nazim said the Committee has therefore decided to increase the budgets of these institutions in order that they discharge their important constitutional responsibilities.

Finance Minister Hashim explained to the Committee that in difficult circumstances all have to bear it and the Ministry and Government has never done to the independent institutions anything more than any other Government institute has to bear.

According to informed sources, Maldives Monetary Authority MMA supported the Budget policy of the Government saying if the Budget can be implemented in the way recommended by IMF and World Bank, MMA will not need to lend money or print currency in order to facilitate the Government expenditure. World Bank President Robert Zoelick has also praised the Government Budget for 2010 in a meeting he had with President Mohamed Nasheed in Copenhagen during the Climate Summit.

During the final round of budget debate yesterday evening opposition DRP members strongly criticised the Government for the lack of vision and reality in the Budget accusing the Government of betraying the people. Defending the budget, ruling MDP members criticised the opposition for obstructing the Government in its decisive policies to revive the economy and lead the country towards realistic and sustainable development that would change the life of the people for the better.

Speaeker Abdulla Shahid presided the meeting.

Reader Comments

  1. It certainly seems wierd that people who memorize the Qur’an have to be paid a monthly allowance of Rf2,000 by the government. I wonder if memorizing the Qur’an incapacitates them so that they are unable to hold a job anymore?

    Shouldn’t memorizing the Qur’an be something that is left up to the individual and the individual does it because of their deep-felt love for the Book, rather than as paid work for the government?

    Posted by aisha | December 25, 2009, 12:19 pm

Post a comment

 characters available



The opinions expressed here are those of the individual authors and commenters and do not necessarily represent the views of Miadhu News Daily. We do not take responsibility for the opinions, facts, or claims presented by individual authors or commenters, and reserve the right to moderate or delete inappropriate comments.

Miadhu Opinion Poll
  • Sorry, there are no polls available at the moment.