One of the biggest projects that will be facilitated under the PSIP for a local island will be the construction of Hanimaadhoo International Airport, which will help boost tourism and development in the Nothern islands of the Maldives.
When you look at the government budget for the year 2023, it helps us identify the goals that the government has for the year. The budget also helps us understand what kind of services are being planned by the government. It gives us an insight into what is being done in terms of health care, education, security and other social services. In addition to this, it helps us understand how much money is allocated for each sector so that we can see if sufficient funds are being allocated to each sector or not.
The development of a country and its public sector is one of the most important aspects included in a budget set for the year. Budgeting has become a necessity in order to control the expenses of the government and ensure that they are used efficiently. A budget is an important tool used by governments to manage their finances, which is why it needs to be accurate and precise. The budget consists of all anticipated revenues, expenditures and other financial transactions.
One of the most important things to go over in the budget 2023 for the Maldives is the Public Sector Investment Program (PSIP). PSIP is a medium-term plan put together by the Government in order to prioritise the infrastructure developments of the country. This plan put together by the Government will be utilised throughout the year in order to ensure that they are prioritising sustainable development plans for the country and its economy and for the benefit of the citizens.
This plan will outline the amount the Government has set aside for the year in order to carry out the PSIP for the year and the major plans that the Government has set in place to be carried out or started within the year.
The PSIP was set at a fixed rate in the last 10 years before COVID-19 struck at 17.8 percent of the total budget each year. However, as COVID-19 slowed down economics all around the globe and largely affected the tourism industry, there was a greater need to combat economic issues than the development of infrastructure during 2020.
In 2022, the PSIP increased as the effects of COVID-19 slowed down and the Maldivian economy finally started picking back up, especially in the tourism sector as the year ended with the Maldives receiving over 1.6 million tourists, accomplishing the visitor arrival goal for the year.
PSIP set for 2023
As the Maldivian economy boosted in 2022, not just in the tourism sector but also as small businesses picked up, the budget for 2023 was set out to further develop the ongoing projects. In addition to focusing on the completion of big ongoing projects such as the Greater Male’ Connectivity project (GMC), the Government PSIP for 2023 also includes a major focus on the development of local islands in the Maldives rather than solely focusing on the development of the Capital City Male’. One of the biggest projects that will be facilitated under the PSIP for a local island will be the construction of Hanimaadhoo International Airport, which will help boost tourism and development in the Nothern islands of the Maldives.
In addition to this project, the Government also highlighted the importance they will be paying to the housing projects to take place in the greater Male’ area as well as local islands, in order to facilitate better and affordable housing to the citizens of the Maldives.
Moreover, the Government also highlighted the importance they will be giving to the development of tertiary level hospital in 2023 with plans to develop hospitals in five areas in the Maldives.
Out of the MVR 8.4 million set for the PSIP for 2023, MVR 5,560.6 million has been set aside for the completion of big ongoing projects and MVR 483.7 million set aside for the completion of new projects.
