Sunday 21st Jul 2024
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Ministry of Finance

Austerity Measures Announced by Maldives Finance Ministry Amid Revenue Concerns

The Maldives Finance Ministry has issued a directive to all government agencies, instructing them to implement austerity measures aimed at reducing costs. In a circular published by the Ministry, six specific areas have been identified for cost reduction, including expenditures on government employees, travel expenses, administrative expenses, training expenses, maintenance and repair costs, and capital expenditures.
The Ministry has also requested that all government agencies refrain from creating any new positions or granting any new allowances without prior approval from the Ministry, even if these expenses have been budgeted for. Additionally, the Ministry has instructed a freeze on new promotions for the time being.
Despite the austerity measures, it is worth noting that the government has created hundreds of new positions in the past month during the ruling MDP's primary campaign, which were awarded to party activists.
This announcement of austerity measures comes at an unusual time, as they are typically imposed later in the year. This marks the first time that such measures are being implemented in the first quarter of the year.