Only 5% of housing budget utilized as year reaches midpoint

As the first half of the year draws to a close, it has been revealed that only five percent of the housing budget has been utilized as of Jun 4^th.

According to the Weekly Fiscal Development Report published by the Finace Ministry, MVR 8.3 billion was allocated for Public Sector Investment Programs (PSIP) in the current year’s state budget. Of this allocation, MVR 2.3 billion has been utilized as of June 4th, down from MVR 2.4 billion spent during the same period last year.

Within the PSIP framework, the largest allocations were directed toward public housing initiatives and transport infrastructure development.

Specifically, although MVR 1.08 billion was allocated for public housing, only MVR 55 million—equivalent to 5.12 percent of the total allocation—has been spent by mid-year. During the same period last year, MVR 90 million was expended on housing, reflecting a decrease of MVR 34.8 million this year.

Similarly, MVR 2.3 billion was allocated for transport infrastructure, of which MVR 818.6 million, accounting for 32.42 percent, had been spent by June 4th. This represents a significant decline of MVR 740.9 million compared to the MVR 1.5 billion spent during the corresponding period last year.

As a result, expenditure in both of these key sectors has recorded a notable downturn so far this year.

President Dr. Mohamed Muizzu had previously stated that this year’s budget, like the preceding one, is primarily focused on housing development. However, housing-related expenditure remained low at the end of last year, and utilization has reached only five percent as the current year approaches its midpoint.

In light of these figures, opposition parties, particularly the Maldivian Democratic Party (MDP), have raised concerns over the suspension of development projects across various islands. In a resolution submitted by the MDP Secretariat during the first National Council meeting held last night following the election of new leadership, the party alleged that development projects across the atolls have stalled. The resolution further claimed that even projects that were approximately 90 percent complete by the end of the previous MDP administration have been halted, particularly highlighting delays in electricity, water, and sewerage projects in several islands.

In response, the MDP has announced plans to stage nationwide protests against the government this coming Thursday.

Furthermore, a motion has been submitted to summon Housing Dr. Abdulla Muththalib to the Parliament seeking detailed information regarding stalled water and sewerage projects, including the identification of affected islands as well as the scheduled timelines for the resumption and completion of these works.