- 24 percent of subsidies for expats
- MVR 308 as subsidies for basic staples
- Policy is to give subsidies to the deserving
Economic Minister Mohamed Saeed has stated expatriates and tourists were recipients of the subsidies and as such, that aspect of the subsidy needed to be cut.
Speaking in TVM's Raajje Miadhu program, Minister Saeed said the global prices of staple goods were in flux but the prices of the very same goods were held at a level price in the local market. He said the excess amount was settled from the state budget, with the state spending over MVR 308 million annually on subsidies alone.
Minister Saeed said subsidies were settled by taxation. However, he noted that these subsidies were used by expatriates and tourists.
"We're subsidizing not only staple foods, we're also subsidizing electricity, health services and other provisions. Annually the state spends MVR 2.5 billion on subsidies. Out of which 59 percent goes to Maldives, 17 percent to tourists and 24 percent goes to expatriates," he said. "The Government seeks to disburse subsidies to those who are in need of that subsidy. But the subsidy funded by tax payers go to expatriates and tourists, that needs to be stopped,"
Minister said the state spends MVR 137 million for rice subsidies, MVR 91 million on flour subsidies and MVR 80 million on sugar.
