Committee reveals report on 2008 budget

25 December 2007
Report: Ayya

The 15 member committee from of the people’s Majlis assigned to evaluate the 2008 budget has said that the proposed estimate budget for year 2008 is greater in percentage wise when compared to the revised budget of year 2007.

The prepared report by the committee says that that the recurrent cost of the budget which is about 72% of the budget (Rf 4493.7 millions) is kept constant on average from the year 2003 to year 2007. It also said that the capital cost of the budget (Rf 1620.9 millions) shared 28% of the budget.
“Recurrent cost for the estimated budget proposed for year 2008 is Rf 8655.7 million which is 73% of the budget. And the capital cost had fallen to 27%. The amount to be spent for development projects (capital formation) is expected to increase in percentage wise” the report said.

The report has further revealed that productivity has increased at 7.8% on average from year 2003 to year 2008. It also said that inflation in year 2006 was 3.5% while it was expected to increase to 6% for year 2007. It also said that the sums show that budget every year has increased Rf 1461.7 Million on average from year 2003 to 2007 which is 26% .So the budget for year 2008 is a much increased budget according to the report.
Amount spent for social development has increased by Rf 712.2 Million (29%) a year while amount spent on economic development has increased by 32% on average every year from year 2003 to year 2007.

“Building roads, harbors and electricity shares most of this. Rf 522 Million had been allotted for reclamation of land, building of roads and harbors. For electricity costs, Rf 221 Million had been allotted for Male’ fourth power and Rf 8 Million for electricity development in the atolls” the reports said.