Ministry of Finance declared that 80% of the 2019 state budget will be achieved by the end of this year, on Tuesday.
While speaking to the press, Chief Financial Budget Executive of the Finance Ministry, Sawash Adam stated that the budget allocated for recurrent expenditures will be completely drawn off and the state operations should proceed at the current speed.
Moreover, Sawash stated that once the projects are awarded and underway, the government will spend 15 percent as advance which will then be reflected in the year’s budget.
He highlighted that by the end of this year numerous financial projects will commence.
The government has launched 42 projects worth over MVR 1 billion, while 136 projects worth MVR 3,8 billion were tendered, up until now.
Sawash affirmed that, despite the transparency with which projects are managed, companies that fail the bidding process often filled complaints thus subsequently delaying the projects. ‘With increased public trust in the government, the projects will proceed faster’, added Sawash.
The ministry further estimated that 78 percent of the budget allocated for the Public Service Investment Programme (PSIP) will be expended by the end of the year.
While the state budget allocated MVR 7.2 billion for PSIP, the state has so far expended MVR 2.6 billion, with a total expenditure of MVR 19.1 billion. The total budget for this year is MVR 31.9 billion.
The proposed state budget for 2020 must be submitted to the parliament by October 31, as per the law