Facts and Figures about revenue and expenditure of the 2009 budget
The Total Revenue figure estimated by the government for 2009 is 9.5 billion mrf. That is the total. And this total includes what the government terms as Capital Revenue of 3.8 billion mrf. Capital revenue being an euphemism, a fancy term for the sale of those supposedly non-existent assets which Maumoon did not create in his thirty year rule. The mid-term budget 2009-2011 proposes to generate 5.7 billion rufiyaa by sale of capital assets not created in the last thirty years. As Yaameen said in one his speeches, those who do not know how to run businesses make money out of selling the capital assets created by those who did.
But we divert. If we deduct the 3.8 billion mrf. to be generated from the whole-sale liquidation of the wealth not created in the last thirty years; something that looks increasingly unlikely to be approved by the current parliament, the government’s revenue figure for 2009 is 5.6 billion mrf.
Let us at this juncture, ignore the fact that expenditure is rising faster than budgeted and revenue is falling faster, and assume that the budget figures are realistic. Let us, for the sake of argument accept that 5.6 billion mrf of revenue is going to be collected.
Now let us take a look at the expenditure side. Expenditure figures of the same budget shows that recurrent expenditure alone for the year is 8.6 billion mrf. Yes, that is 3 billion mrf more than what is going to earned domestically.
What is the 8.6 billiion made up of? That’s 4.1 billion of personal emoluments made up of salaries, wages, over times and other allowances. Another 351.9 million of pensions, retirement s and other benefits taking the expenses figure up to 4.4 billion mrf. Wait, we do not, yet have the operational budget necessary to run the government ministries. The rent, telephones, hire charges and the like. That’s 998.8 million mrf. That’s already 5.4 billion mrf. We have not yet, considered 206 million of travel expenses, 154.5 of supplies and requisitions and 328.8 million of training expenses. Knowing how prudent and cost conscious the government is, we can rightly assume that there will be, as the president and vice president are showing by personal example, no unnecessary travel related expenses. So being, the fair and balanced people we are, let’s ignore the travel expenses but bring in the 328.8 million of training expenses. Wait, that’s 5.7 billion. That’s more than the 5.6 billion that is estimated to be earned.
Still, the supplies and requisitions, and repairs and maintenance figures are to be included. In fact, the government’s own estimate of expenditure is 8.6 billion mrf. The revenue estimate of 5.6 added together with an estimated grant figure of 567 million mrf (which is yet to be granted) adds up to only 6.2 billion mrf, still 2.4 billion mrf shy of the estimated mrf.
That’s a hole of 2.4 billion mrf unless, we agree to sell off our hard earned assets to finance the daft and dim witted mdp government and keep them in power so that they can dig even a bigger hole for the next year.
Remember we are talking of estimates made in the budget assuming that anticipated revenue will be received, expenditure is controlled and unnecessary expenses curtailed. And we all know how that one is going.
When rebuked by the IMF in no uncertain terms, the President has reacted in a predictable manner. According the press secretary; the person who actually translates to common language such that the ordinary folk can get what the President actually said, (thereby giving significance to the local term ‘rasmee tharujamaanu’) the plan is to cut the ranks of the civil service.
Assuming a 15,000 mrf salary figure (an estimated average figure) per civil servant per month totaling to 180,000 mrf per year, the government will have to axe close to 13,000 staff just to fill the 2.4 billion shaped gap in the budget.
And yet that’s not all. There is still 3.9 billion mrf to be spent on capital expenditure. Yes, that’s 3.9 billion out of which 432 million mrf are allocated to development projects. That’s 432 million mrf of harbors that’s not going to be built, schools that’s not going to be teaching any time soon and mosques that’s not going to be open for prayers.
Now for some questions. Not wild conjecture. Just questions.
Will our civil service be paid towards the end of the year and if so how much money are going to be printed and what will be the effect on that on the already straining exchange rate? Secondly how is this position being further impaired by slashing another 500 million mrf from import duty? Ultimately who pays? What the hell are all those MP’s in the parliament doing? Who cares?
But we divert. If we deduct the 3.8 billion mrf. to be generated from the whole-sale liquidation of the wealth not created in the last thirty years; something that looks increasingly unlikely to be approved by the current parliament, the government’s revenue figure for 2009 is 5.6 billion mrf.
Let us at this juncture, ignore the fact that expenditure is rising faster than budgeted and revenue is falling faster, and assume that the budget figures are realistic. Let us, for the sake of argument accept that 5.6 billion mrf of revenue is going to be collected.
Now let us take a look at the expenditure side. Expenditure figures of the same budget shows that recurrent expenditure alone for the year is 8.6 billion mrf. Yes, that is 3 billion mrf more than what is going to earned domestically.
What is the 8.6 billiion made up of? That’s 4.1 billion of personal emoluments made up of salaries, wages, over times and other allowances. Another 351.9 million of pensions, retirement s and other benefits taking the expenses figure up to 4.4 billion mrf. Wait, we do not, yet have the operational budget necessary to run the government ministries. The rent, telephones, hire charges and the like. That’s 998.8 million mrf. That’s already 5.4 billion mrf. We have not yet, considered 206 million of travel expenses, 154.5 of supplies and requisitions and 328.8 million of training expenses. Knowing how prudent and cost conscious the government is, we can rightly assume that there will be, as the president and vice president are showing by personal example, no unnecessary travel related expenses. So being, the fair and balanced people we are, let’s ignore the travel expenses but bring in the 328.8 million of training expenses. Wait, that’s 5.7 billion. That’s more than the 5.6 billion that is estimated to be earned.
Still, the supplies and requisitions, and repairs and maintenance figures are to be included. In fact, the government’s own estimate of expenditure is 8.6 billion mrf. The revenue estimate of 5.6 added together with an estimated grant figure of 567 million mrf (which is yet to be granted) adds up to only 6.2 billion mrf, still 2.4 billion mrf shy of the estimated mrf.
That’s a hole of 2.4 billion mrf unless, we agree to sell off our hard earned assets to finance the daft and dim witted mdp government and keep them in power so that they can dig even a bigger hole for the next year.
Remember we are talking of estimates made in the budget assuming that anticipated revenue will be received, expenditure is controlled and unnecessary expenses curtailed. And we all know how that one is going.
When rebuked by the IMF in no uncertain terms, the President has reacted in a predictable manner. According the press secretary; the person who actually translates to common language such that the ordinary folk can get what the President actually said, (thereby giving significance to the local term ‘rasmee tharujamaanu’) the plan is to cut the ranks of the civil service.
Assuming a 15,000 mrf salary figure (an estimated average figure) per civil servant per month totaling to 180,000 mrf per year, the government will have to axe close to 13,000 staff just to fill the 2.4 billion shaped gap in the budget.
And yet that’s not all. There is still 3.9 billion mrf to be spent on capital expenditure. Yes, that’s 3.9 billion out of which 432 million mrf are allocated to development projects. That’s 432 million mrf of harbors that’s not going to be built, schools that’s not going to be teaching any time soon and mosques that’s not going to be open for prayers.
Now for some questions. Not wild conjecture. Just questions.
Will our civil service be paid towards the end of the year and if so how much money are going to be printed and what will be the effect on that on the already straining exchange rate? Secondly how is this position being further impaired by slashing another 500 million mrf from import duty? Ultimately who pays? What the hell are all those MP’s in the parliament doing? Who cares?
(All budget figures are taken from ‘Government Budget in Statistics, Financial Year 2009’ available at http://www.finance.gov.mv/Budget_in_Statistics_-_2009.pdf. All other figures from May and April report from MMA site www.mma.gov.mv)
June 19, 2009 3:09 PM
Wow! And double wow!
June 19, 2009 3:29 PM
An exceptionally well-researched article. Hats off to the RN team. Almighty Allah please save us ordinary Maldivians serving in the civil service from this MDP-generated catastrophe looming overhead. President Nasheed, please sack your so-called economic and finance advisers and also your tharujamaanu in order to cut down expenses and also for the common good of Maldives.
June 19, 2009 9:51 PM
ordinary maldivians in the civil service you say? they voted for this change! the joke's on them. need a miracle to get these 'change pro' people a good deal....
June 19, 2009 10:42 PM
Indeed change is good. Let us now allow President Nasheed to change the civil service employees in government offices for reformists. That way the reformists can earn good money and will not need to "reform" other people's money to maintain their reformist habit. We have made a good start by bringing home one of the key reformist's son who was sentenced to life in jail because of his reformist activities. Let us create another lowly-sounding post like under-secretary to the deputy assistant under-secretary with a salary to at least match Minister of State (MRF 47000 per month, was it?) and allow him to freely continue his reformist work in peace t our expense and with our money; it is the least we can do for those brave people.
June 19, 2009 11:32 PM
Yes, dear fellow Maldivians. The wind of change is surely blowing across our motherland. The only problem is, President Nasheed has farted in the wind that washes ever so gently across our faces.
June 20, 2009 12:47 AM
Dear RN, it's not realistic to take 15k as an average figure for civil servants. Almost all civil servants have to take around 2 additional parttime jobs just to earn anywhere near that 15k figure... That amount is for civil servants of DG and Permanent Secretary level, so you should use the more realistic figure of between 4 - 8,000 to calculate how many of our 42,000 civil servants have to be fired... Also, why not do a comparison? Those in syaasee maqaamuthah earn at least 12,000 right?
June 20, 2009 9:27 AM
Yea, how many State Ministers / Underwear-Secretaries / Appointed Councillors need to be dismissed before they look for civil servant targets?
June 20, 2009 9:31 AM
... forgot to mention Jesus Afeef the new Advisor on political affairs... The way they're throwing away all the money in the Treasury on meaningless posts, I'm sure there must be an Advisor on Emptying the Crap Bucket also...
June 20, 2009 9:47 AM
"dhen 30 aharuge thereygai kon kameh hey kodhdhinee?"
Mulhi dhuniyege iqthisoadhu mihaa heenaruvefai vaniko raajjeyge iqthisoadhah luyeh libidhaane gothah thiya nukodhey kanthakaai ufadhdhaa nudhey muassasaathah vikkaalaigen aamdhanee hoadhumuge furusathu oiykamah shukuruverivan.
June 20, 2009 12:24 PM
Let's hear Juhaa spout some more lies and try to make us think black is white and white is black now...
June 20, 2009 3:31 PM
Here's another one good for a laugh! Special Envoy for Science and Technology (and Homosexuality) Ahmed Shafeeq Moosa (aka Mahaa Moakulhi Moosabeyyaage Moakulhi Small Sappalhey) apparently gave a "lecture"...! kekeke. Wonder how the crossdressing little faggot stumbled through his "lecture"...!
June 20, 2009 9:17 PM
omigosh! where on earth did little sappalhey speak? what rot did the fellas here from him? ulheyne dho thiri thireega ...!
June 23, 2009 9:42 AM
The Nasheed Administration is certainly doing its best to sink the country into an economic quagmire. And the Majlis seems incapable of stopping this. Look at what's happening with Tax Bill. Most of the crowd in Majlis have no idea what it is about. And the opposition coalition don't seem to have a think tank behind them educating their nincompoop MPs on the issues. Those who know are grandstanding, showing off their knowledge without trying to increase the awareness level of their colleagues. The country is doomed, whether it be Nasheed or Yameen or Thasmeen in power.
June 23, 2009 3:57 PM
Yep. doomed. so much for voting for a change. Voting for a drowning, more like.
June 23, 2009 9:52 PM
Anons @ 9.42 and 3.57. Instead of doomsday prophecies, let us try and offer solutions. I still support civil society mobilization. Take the Civil Service mentioned in the above article. It should organize itself and start fighting for its rights. It should form representation associations or unions from its different categories of service. eg. The EX-xx tier such as ADGs, DGs, EDs should form one association. Profesionals another association, general staff another and the labor (semi skilled) level another. They can then organize amongst themselves and fight for better pay, better working conditions, etc. Forget about begging the PSs of individual ministries. The PS are part of the CSC, not part of the underlings. Let's think first and begin.
June 23, 2009 11:34 PM
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June 24, 2009 4:29 PM
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June 29, 2009 12:58 PM
Methinks mayhaps us poor Maldivians should take a leaf from the Honduras book...?!