President Dr. Mohamed Muizzu has decided to implement measures aimed at curbing government expenditure, which includes a temporary suspension of appointments to political positions.
Delivering his Presidential Address at this year's first Parliament session, President Dr. Muizzu attributed the increasing debt to a disparity between government spending and revenue. In response to this fiscal challenge, he highlighted the necessity of taking actions to trim government expenses. Notably, he outlined changes to the subsidy system, with an emphasis on directing subsidies towards those in greater need.
Additionally, President Muizzu addressed concerns surrounding the health insurance scheme provided by Aasandha Company Limited, highlighting the imperative to ensure equitable access to services for both the affluent and the underprivileged. He acknowledged the financial strain posed by Aasandha and emphasised the need for its reform.
Furthermore, President Dr. Muizzu underscored additional cost-cutting measures, such as refraining from further appointments to senior political positions unless under exceptional circumstances. He noted the importance of strengthening state-owned enterprises (SOEs) and decreasing their reliance on state support. He also expressed commitment to enhancing the management of SOEs and improving their financial standing.
Moreover, President Dr. Muizzu outlined an approach to alleviate the fiscal deficit and overcome existing constraints. He affirmed that the government's plan is geared towards enhancing the country's financial stability, rectifying the debt situation, and ensuring a sustainable fiscal outlook.