The Parliamentary Budget Committee has approved the proposed USD 3.7 billion state budget for 2025, paving the way for key government projects and programs in the coming year. The decision was made without amendments but includes a directive for the government to provide detailed information about the projects outlined in the budget. Out of the 19 committee members, 15 voted in favor of the proposal.
Deputy Speaker Ahmed Nazim emphasized the importance of transparency and accountability within the Public Sector Investment Programme (PSIP), suggesting several measures to enhance oversight. Among his recommendations was the categorization of PSIP projects based on specific criteria and the submission of a detailed, actionable project list to Parliament by February 2025. Additionally, Nazim proposed that the government deliver a separate report by March 2025, clarifying which projects are feasible and which are not. Quarterly progress reports on ongoing projects were also recommended to ensure consistent monitoring.
The budget, which was initially submitted to Parliament on October 31, allocates USD 3.2 billion for expenditures. This includes USD 2.3 billion for recurrent expenses and USD 862.3 million for capital expenditures. A notable portion, amounting to USD 804 million, has been designated for PSIP projects, reflecting the government’s focus on infrastructure and development.
Revenue and donations for 2025 are projected to total USD 2.57 billion. The government has also outlined cost-saving measures expected to reduce state expenditures by USD 428 million. Officials have highlighted that this budget reflects the lowest deficit in recent years and represents a step toward long-term debt sustainability.
The Parliament’s decision marks a critical step in addressing fiscal challenges while advancing key national projects and services. The recommendations for transparency in PSIP reporting are seen as a move to strengthen governance and public trust in the budget process.
