The Finance Ministry has taken several measures to reduce government expenditure and instructed government offices and agencies to comply with the measures.
A circular sent to government offices and agencies signed by Finance Minister Ibrahim Ameer said measures should be taken to reduce state expenditure due to the Russian-Ukrainian war. One of the reasons for the increase in government spending is the increase in oil prices, he noted, stating that the hike in costs led to significant changes in the prices of goods and services, thereby increasing government spending.
Therefore, a number of measures have been ordered to reduce state expenditure. In this regard, the Finance Ministry instructed government agencies to suspend employee promotions and asked that only urgent work be done outside official work hours. The Ministry further said state-sponsored scholarships for employees should not be started at this time, and services should not be obtained unless it is necessary.
In addition, the Ministry also requested to pause repair and renovation work of office buildings. The Ministry said if any work undertaken by offices costs over MVR 5,000, permission must be obtained from the Ministry to proceed with the work. The Ministry further said that all work undertaken with Finance Ministry's approval must be necessary.
The Finance Ministry's notice said the new measures would come into effect on June 21.
In a press conference held on June 8, President Ibrahim Mohamed Solih said he would not start any major development project by taking out additional loans. If the government does not receive the expected revenue, he will stop some projects and move the country forward with what is available, he had said. President Solih said it must be acknowledged that the Maldives would also be affected by the crisis faced by the global economy.
However, the President said that baseless rumors are being circulated regarding the country's economic situation. The President said that while the Maldives suffered an MVR 70 billion loss in the last two years due to the COVID-19 pandemic, a further MVR 35 billion had not entered the state budget during the period. He said the government was forced to take out loans to keep the economy going for this reason, but that the government can repay the loans. The President urged people not to spread untrue allegations about the economic situation.
"These rumors have caused the public to worry. It should be noted that some people are making such statements for political purposes. However, these matters should not be politicized," he said.
The President further said that he would not take out more loans and start a new major project at this time. However, the projects currently being implemented with the loan funding will continue. This includes the construction of the Thilamale' Bridge and the development of Gulhifahu Port, he said.
In a press conference held on June 8, President Ibrahim Mohamed Solih said he would not start any major development project by taking out additional loans. If the government does not receive the expected revenue, he will stop some projects and move the country forward with what is available, he had said. President Solih said it must be acknowledged that the Maldives would also be affected by the crisis faced by the global economy.
However, the President said that baseless rumors are being circulated regarding the country's economic situation. The President said that while the Maldives suffered an MVR 70 billion loss in the last two years due to the COVID-19 pandemic, a further MVR 35 billion had not entered the state budget during the period. He said the government was forced to take out loans to keep the economy going for this reason, but that the government can repay the loans. The President urged people not to spread untrue allegations about the economic situation.
"These rumors have caused the public to worry. It should be noted that some people are making such statements for political purposes. However, these matters should not be politicized," he said.
The President further said that he would not take out more loans and start a new major project at this time. However, the projects currently being implemented with the loan funding will continue. This includes the construction of the Thilamale' Bridge and the development of Gulhifahu Port, he said.
