Majlis endorse a salary of Rf100, 000 for the President, Rf75, 000 for Vice President

The newly appointed government of President Mohamed Nasheed (Anni) has submitted an Rf 13.6 Billion state budget for year 2009 to the People’s Majlis.

The budget was presented to the 17 th sitting of the third session held on Tuesday by Minister of Finance and Treasury Ali Hasim. The total amount of the proposed budget for year 2009 by the government is Rf 13,648,951,740.

Finance minister Ali Hashim in presenting the proposed budget for 2009 expressed that the budget will face a shortfall of Rf 5.793 Million and that it can be balanced with the anticipated revenue of Rf 1.217 Million to be received from revenue generated by extending lease period of resorts; anticipated revenue of Rf 225 million from corporate tax and Rf 4.351 million anticipated as foreign aid. The minister noted that extending the lease period of the resorts depends of legislation yet to be endorsed by the Majlis.

Minister said 73.4percent of the budget is on administrative expenses and that the budget also takes in to account funds given as pensions and retirees. The amount allocated for environmental protection has been increased Rf 291 Million. The 2008 state budget allocated Rf 157 Million. Defense expenses were reduced to 4.2 percent of the budget from this year’s figure of 5.2 percent.

The amount allocated for education was increased from Rf 1.538 million in this year’s budget to Rf 2.432 Million in the proposed budget for 2009.

Rf 3.628 Million has been allocated as capital expenses which is 3.4 percent higher than the amount allocated in this year’s budget.

In contrast to 2008 budget, Rf 430.2 Million from government earnings as import duty has been omitted. The 430.2 Million includes Rf 105 million which the government will loose by waiving import duty on essential food items for a healthy living; Rf 10.5 million by waiving duty on medicines and Rf 314 million by waiving duty on diesel.

Finance Minister Ali Hashim expressed that national GDP will increase by 4.5 percent as the fishing has improved and more tourists are expected to arrive.

The 2009 state budget allocates Rf 2797.2 Million for general services and 47.9 percent of the budget has been allocated for social services.

Finance ministry also revealed that despite the budget proposal, the budget will be revised in March next year.

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