With only three months remaining in the fiscal year, a significant 72% of the allocated budget for development projects remains unspent, according to official government figures.
This comes amidst a rising number of complaints regarding stalled projects nationwide.
The Ministry of Finance reports that MVR 3.5 billion has been expended on projects as of the 18th of this month. This figure represents a MVR 4.7 billion decrease compared to the same period in the previous year.
Out of the MVR 12.5 billion budgeted for projects this year, 72% remains unutilized, meaning only 28% has been disbursed to date.
Overall, total government expenditure for the year so far stands at MVR 26.6 billion. Approximately 87% of this, or MVR 23.1 billion as of the 18th of this month, has been allocated to recurrent expenditures such as salaries, allowances, and various operating costs. Consequently, only about 13% of the total expenditure has been directed towards development projects.
As of the 18th of this month, government revenue reached MVR 27.6 billion, indicating that current expenditure is less than revenue generated.
However, concerns persist regarding the implementation of projects and the timely allocation of funds for those already underway. The opposition alleges that the government owes suppliers approximately MVR 14 billion, although the Ministry of Finance has not officially disclosed this figure.
It is noteworthy that numerous project signings, groundbreaking ceremonies, and project implementations are occurring during President Dr. Mohamed Muizzu's atoll visits. The President has previously stated that both the current year and the next will be dedicated to fulfilling electoral promises.
Despite the low project expenditure, the nation's debt burden remains exceptionally high. The national debt is projected to be approximately USD 500 million this year, escalating to USD 1.1 billion next year. International financial institutions have consequently called for stringent spending cuts.