The cabinet’s economic committee has announced President Abdulla Yameen will hand out the promised MVR5000 (US$ 324) to an estimated 17,000 pensioners starting in March.
Tourism Minister Ahmed Adeeb told the media during a press conference this afternoon: “I announce the happy news that the elderly will receive MVR5000 instead of MVR2000 at the end of this month.”
The government had allocated MVR470 million (US$ 30.5 million) in the state budget to give out an MVR2,300 (US$ 149) in cash handouts to individuals over the age of 65. These funds will now be invested in the retirement pension fund or in financial instruments such as T-bills to generate the monthly MVR5000 stipend, Adeeb said.
The government will need to generate an ambitious MVR1 billion (US$64.9 million) from investments this year to sustain the venture.
Although the government has not yet begun investments to generate the additional income for pensions, it will begin disbursing MVR5000 at the end of February as it is “certain” the required funds can be generated through future investments.
In the meantime, money will be redirected from within existing budgetary resources using “innovative methods” to pay out the pension this month, Minister of Fisheries and Agriculture Mohamed Shainee told Minivan News.
“This will not require additional expenditure from the budget. This will be done through investments made outside of the budget,” Adeeb told the press today.
“When we invest in the pension fund, this allowance will be given out without any breaks in the next five years. Even in the worst-case scenario, we will be able to generate that money. We can do this without any issues,” he said.
The cabinet’s economic committee is to meet tomorrow to discuss the most viable method of investment, Shainee told Minivan News.
Former President Mohamed Nasheed introduced the old age pension in 2008, while President Yameen pledged to increase the pension during last year’s presidential election campaign. On assuming office, Yameen said the government would not give cash handouts, but would provide the promised money through an insurance scheme.
The People’s Majlis subsequently passed a record MVR17.95 billion (US$ 1.6 billion) budget for 2014 with a deficit of MVR1.3 billion (US$84.3 million).
The deficit is expected to grow after the People’s Majlis failed to approve revenue-raising measures as proposed by the Ministry of Finance and Treasury.
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Who are these monkeys trying to fool? Using T-bills as investment vehicles? Innovative? Well, hello, get a reality check will you?
Who is going to buy your less-than-toilet-paper-worth T-bills? To generate the $64 billion required to pay from the allocated $30 billion in the budget, you need to generate a 100% return! I'm sure the whole world's financial markets are going to be very interested in such an "innovative" method in finance!
In short, this is a load of rubbish aimed at bribing the population in time for Majlis elections!
Correction: $64 billion should read $64 million.
Innovative methods? Generating money? Can someone teach me how? I want to generate money too!
Truly an ambitious and daring plan....
"innovative methods" - a interesting choice of words - it raises more questions than answers.
why in the first place 2300 was OK to fin ace from debts.
No sensible person would do fin ace these kind of expenses from debt finance.
Same goes with the " AASANDHO" TOO. It was also a total disaster created by Nasheed.
Universal health scheme should be given to those who only need and should not extend to everyone .
Innovative. lol
Hey Hero! We'd like to live as free citizens in the modern age, thank you - and not as your peons in the jahiliya era.
This could be the government using the state funds in capital investment funds. This should have been done long time ago.
In Maldives currently since interest is haram the bank does not give interest to savers (households mostly), however chrge exorbitant interest on loans given out keeping the difference as profit.
The government has vast amounts that could be invested locally and more importantly overseas which could generate USD which is critical for the economy.
for example the current floating interest rate for over $100,000,000 is over 10% so this means by keeping this money overseas the government can earn USD $ 10,000,000 a year without raising taxes equivalent of MRF 170,000,000 ! (i.e. MRF 566 per head)I really hope people go to school and learn their economics before being smart mouthed.
So typically Maldivian! Money is like coconuts, growing in trees. The problem is, we are tool lazy to get a ladder and collect it!