Maldives Monetary Authority (MMA) has announced that the reduction in expenditure and the cessation of currency printing, initiated by the previous administration, have proven advantageous to the economy. This announcement came in response to inquiries from the financial committee of the parliament regarding the country's cashflow.
Deputy Governor of MMA, Ahmed Imad, shed light on the cashflow, stating that the government's expenditure has been secured without resorting to public bank overdrafts or currency printing since 2023. He noted the absence of situations necessitating currency printing since the current government took office.
Imad revealed that the government's forecasted revenue, including donations, is USD 2.2 billion, with USD 466 million attained by March 14. Regarding expenditures, he disclosed reductions in recurrent and capital spending compared to previous years. While USD 97 million has been spent on capital investments this year, last year saw USD 207 million in capital expenditure. He estimated a total government expenditure reduction of approximately USD 128 million.
Imad highlighted various measures taken to reduce expenditures and stabilize cashflow, including obtaining funds from the domestic market. He noted that no more than USD 13 million was obtained from the domestic market through securities issuance.
Furthermore, Imad stated that the government's reserve currently stands at USD 580 million, projected to increase to USD 600 million by year-end, with plans to maintain this amount.