Parliamentary Budget Committee approves USD 3.7 bln State Budget 2025

The Parliament’s Budget Committee has approved the government-proposed USD 3.7 billion for state budget 2025. The committee passed the budget without any modifications but stipulated that the government must submit detailed information on the projects included in the budget to Parliament. The approval was secured with 15 out of 19 committee members voting in favour. Deputy Speaker Ahmed Nazim proposed a general recommendation to enhance transparency and accountability in the Public Sector Investment Programme (PSIP). His recommendations include categorising PSIP programmes based on specific criteria and submitting a comprehensive list of actionable projects to Parliament by February 2025. Furthermore, the government is to provide a separate list by March 2025, indicating projects that are feasible and those that are not. Nazim also recommended quarterly progress reports for ongoing projects throughout the year. The budget, submitted to Parliament on 31st October, allocates USD 3.2 billion in expenditures, including USD 2.3 billion for recurrent expenses and USD 862.3 million for capital expenditures. A significant portion—USD 804 million—is earmarked for PSIP projects. The government anticipates USD 2.57 billion in revenue and donations while implementing stringent measures expected to save USD 428 million by reducing state expenditures. Officials have noted that this budget reflects the lowest deficit in recent history and aims to sustainably reduce national debt levels over the long term.