MPs Question Lack of Details on PSIP Projects in Proposed 2025 Budget

Members of the opposition in the Budget Review Committee voiced concerns over the absence of detailed information on Public Sector Investment Programme (PSIP) projects in the proposed State Budget 2025.

The budget outlines MVR 12.4 billion for PSIP projects, with MVR 3 billion allocated for new initiatives. However, unlike previous years, the document does not specify project names, costs, updates, or intended locations.

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During Thursday’s committee meeting, several MPs pressed Finance Minister Moosa Zameer for clarity on the planned projects. Hanimaadhoo MP Abdul Ghafoor Moosa, representing the Maldivian Democratic Party (MDP), initiated the discussion, emphasising the need for transparency.

“I believe Parliament should be informed about the projects planned for our islands. This is why we need this information,” said Ghafoor.

In response, Zameer argued that prior budgets included project figures without considering fiscal ratios or cash flow, leading to many unfinished initiatives.

Despite this, Hithadhoo MP Ibrahim Nazil and South Hulhumale’ MP Dr Ahmed Shamheed expressed dissatisfaction, reiterating the need for transparency.

Zameer maintained that the proposed MVR 12.4 billion includes both ongoing and new projects. He warned that disclosing specific projects could lead to delays if some are not completed within a year. Nazil countered by stating that budgeted projects could be distributed across multiple years and quarterly allocations, negating the need for annual completion.

Maldives Monetary Authority (MMA) Governor Ahmed Munawar also weighed in, linking current challenges to increased capital expenditure during the COVID-19 pandemic.

“Gross financing, which was around MVR 7 billion in 2013, surged to MVR 23 billion by 2019,” Munawar noted, adding that project commitments should be made only after securing the necessary financing.

The debate over the budget’s lack of transparency on PSIP projects highlights broader concerns regarding fiscal management and public accountability. The committee is expected to further scrutinise the budget in the coming days.