Thursday, December 13, 2007

2008 budget conflicts constitution - Ibra

13 December 2007
Report: Soodh

MP for Male’ Ibrahim Ismail (Ibra)as well as the Leader of Maldivian Social liberal Party (MSLP) has said that proposed budget for 2008 is in conflict with the article 78 of the of the current constitution. Ibra made the statement while speaking at Majlis session held yesterday.

Ibra said that article 78 of the current constitution requires all expenditures for the year to be included in the budget and as the proposed budget for 2008 does not indicate expenditures clearly it is against the constitution.

Ibra said although the budget specifies US$ 280 million as Reserve, actual Reserve amounts to US $140 million equivalent to one and half months food imports for the people.

“Although US $ 280 million is specified in the Budget as national reserve, actual reserve is half of that, the other half is what is kept by the commercial banks as reserve, any change to the lending ceiling of the bank would require the reserve to be utilized” said Ibra.

Ibra further said he calling very loudly for inclusion of medical insurance for all Maldivians in the proposed budget.

“Average monthly bed rent of the 89 resorts in Maldives is US $ 3000 per bed, the average monthly bed rent of the other 28 resort is US $14000, if the government wants they can increase the bed rent of the resorts of those 89 resorts, from 3000 to 5000 dollars, the government will then earn 35 million rufiyaa” said Ibra pointing out that a full medical insurance for all Maldivians will be less than 35 million rufiyaa.

Commenting on the budget President’s member Imadh Solih said at a time when the government development policies are based on population consolidation, the Construction Minister’s comments at a recent press conference stating the government plans to provide easy and safe access to all inhabited islands by developing suitable harbors, indicates lack of planning and foresight.

MP for Alif Dhaalu Atoll, Abdul Muhushin said that 50 percent of the recurrent expense specified in the proposed budget is allocated for the salaries of government staff and amounts to 4.392 billion rufiyaa. He said this should be considered very carefully as the number of government employees are increasing steadily.

President’s Member Hussain Hilmy speaking on the budget said the anticipated revenues for 2009 and 2010 forecasted in the proposed budget is not based on realistic studies.

President’s Member Ibrahim Saleem said the amount allocated in the proposed budget for Agriculture and Fisheries is a relatively low figure.

“It is the responsibility of the government to enhance agriculture and fisheries sector by introducing more innovative methods” said Saleem.

Although many Members supporting the government offered criticisms to the budget, they all said they would support the budget.

A Majlis session is scheduled for this morning.

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