Economy will be managed with the advice of financial institutions: Finance Minister

Finance Minister Ibrahim Ameer has said that decisions regarding the Maldives' economy will continue to be taken with the advice of financial institutions working with the Maldives.

The Minister's comments come as the IMF and World Bank have welcomed the Maldives government's efforts to improve the country's economic situation.

In a series of tweets posted by the Minister on Sunday, he said that the IMF and the World Bank welcomed the government's initiatives to strengthen economic and fiscal standards and sustainably enhance the economy.

"This is a sign of confidence in the steps taken and intended to be taken by the Maldives," he said.

The Finance Minister said the 2023-2025 fiscal strategy would take measures to increase revenue and reduce expenditure to ensure the Maldives' economic and fiscal sustainability. He said he had shared information with financial institutions working with the Maldives on the measures to be taken in this regard.

The Minister said the government has decided to increase GST and TGST next year to boost revenue and review subsidies to keep expenditure sustainable, as mentioned by both the IMF and the World Bank. He said that reducing the dependence of government-owned companies on the state budget is an important step toward improving economic standards.

The Minister said the government is managing the economy and fiscal affairs in consultation with international financial institutions. For this reason, he said, the Maldives received the approval and support of international financial institutions for the measures taken by the government to manage the economic crisis caused by the COVID-19 pandemic.

"In the future, the Maldives will continue to take economic and fiscal measures with the advice of the financial institutions working with the Maldives, putting the country's economic growth, people's prosperity, and financial sustainability first," the Minister said.