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Limit subsidies, increase aid: Zuhoor

Minister at President's Office and Chair of Economic Council Ahmed Zuhoor says the Government plans to limit subsidies and increase aid.

Speaking in the press conference held yesterday regarding the reduction of subsidies for basic foods, Minister Zuhoor said the change of Maldives to a developing nation status, had halted most of the aid and grants the country had previously received. He said the large scale infrastructure projects were carried out by concessional loans granted by international financial institutions. However, he said the institutions raised many objections to granting loans, citing that Maldives was heavily subsidies. Zuhoor said there were many restriction on the nation to regulate electricity and food subsidies.

"Global financial institutions bring out many pressures. This is something we have to do. Developmental projects have to be carried out. That can only be done with assistance from financial institutions, which can only be done with changes to the subsidy system," Zuhoor said. "There is some political pressure, but this was a sincere effort on part of the Government to resolve issues.

The Minister said the Government aims to limit subsidies released and issue all required aid to the public.

"The Government aims to minimize subsidies and without giving subsidies issue all forms of aid. If we're to call it subsidies, then there will be no way to resolve the issues facing the nation," Minister Zuhoor said after concluding the press conference.

The Government now issues subsidies via NSPA to individuals registered for subsidies. The Government will provide MVR 40 per individual and MVR 240 for a household.

"We're giving subsidies not just to basic food, we're providing subsidies for medicals, doctors, education, school supplies, sanitation, ports. We're running on subsidies. We cannot ignore the calls on the Government to reduce subsidies. Instead of issuing direct whole sale subsidies, we're trying to reduce the damages on public," he said.