President Ibrahim Mohamed Solih has revealed that the government will be able to reserve USD208 million next year due to the reduced expenditure.
Speaking at a press conference, President Solih provided details on the economic development of the Maldives. He described 2022 as a challenging year due to the country having to deal with the global economic impact of the Russia-Ukraine conflict just as it was recovering from the COVID-19 pandemic.
President Solih noted that the revenue is increasing each month but said that the state needs to find more avenues for revenue generation due to the increase in the price of fuel and goods. He said that he is pleased with the government’s efforts in this regard and that the economic outlook of the Maldives is positive. He detailed that the Maldives is expected to grow by 12.3% this year and 7% next year.
Additionally, President Solih said that it was important to reach pre-COVID-19 levels in order to develop the tourism industry, adding that more tourists visit the Maldives now than prior to the pandemic. He also said that the Maldives is one of the 10 fastest-growing nations and was one of the top five nations that experienced the most growth this year.
President Solih further said that USD610 million will be placed in the sovereign fund next year and the government faces no issues in paying its debt, adding that robust measures have been taken to repay the loans. He also detailed that fuel subsidies will be reduced and the subsidies will be provided directly next year and the expenditure on the national health insurance will also be reduced.
Furthermore, President Solih provided details on the projects the government commenced in the past four years. As such, he said that the government commenced 141 water supply projects, connected 313 power generators in 144 islands, and upgraded 77 powerhouses. He added that the government has also completed the construction of harbours in 44 islands, while 37 harbour development projects and 31 road development projects are ongoing.