Government sets MVR370 million as capital for Small and Medium Enterprises in its MVR1.7 billion supplementary budget.
Speaking at the budget committee, Finance Minister Ibrahim Ameer said that such a large amount was allocated in the supplementary budget for SMEs in order to assist in development of such enterprises.
“This will assist in increasing local productivity, and increase the role of local entrepreneurs in bolstering and enhancing the economy.” Minister Ameer said.
He noted that MVR189.4 million was allocated in the supplementary budget as subsidy for government owned companies out of which MVR130 million is allocated for Maldives Water and Sewerage Company, MWSC.
“The subsidy amount provided for MWSC is fulfilment of an agreement between the previous government and MWSC” Ameer added.
He said the current administration is working to improve the liquidity of MWSC.
The supplementary budget also will provide MVR35 million to national carrier Island Aviation, in order to assist the company to reduce their prices by 25 percent. Furthermore, it allocated MVR24.4 million for reducing electricity prices.
Meanwhile, Finance Minister said that budget support is to be gained through grant aid from numerous countries. This includes grant aid of MVR716.8 million by Saudi government, MVR100 million by Indian government. Minister said other expenses of the budget can be covered through MVR700 million generated as government revenue.
According to the government, the supplementary budget was submitted and passed in order to fulfil its 100 day pledges while also accommodating expenses required to enact recently passed laws in order to improve the living conditions of citizens.
Finance Minister criticized the former government, saying that the current administration is spending a lot on salvaging health and education sector which was neglected by the former government.
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