Thursday 20th Jun 2024
Dhivehi Edition
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Ministry of Finance

Further Corrective Measures to be Taken from Next Month to Reduce Wasteful Spending

Finance Minister Dr. Mohamed Shafeeq has announced that further reform measures will be taken to reduce government expenditure from next month.
Minister Dr. Shafeeq said the biggest challenge at the moment is the country’s debt problem and the previous government’s unregulated spending.
Bulk procurement for medicine has already started, reducing cost of procurement. Quality medicines being made available at lower prices is a positive change in the Aasandha system. The minister said he would give high priority to strengthening government companies and bringing about positive changes through Aasandha.
The government has also decided to alter the subsidy system to target those who need it. The reform will change the subsidy for electricity, oil, sugarcane, and sewerage services to a direct transfer system to those who are in need, he said. This year's budget has allocated 600 million MVR for subsidies.
In addition, the government decided to reform state-owned enterprises (SOE) to reduce government waste. The government has said that some SOEs may have to be merged due to the changes.
The MDP government has caused the state’s finances to go from bad to worse, the government of President Dr. Mohamed Muizzu has said. The President himself highlighted the issues that exist now due to the last government’s decision to print more money than any other government in the last 40 years.