Minister of Economic Development and Trade Mohamed Saeed has asserted that the policies implemented by President Dr. Mohamed Muizzu will lead to a further decrease in dollar rates.
Addressing allegations from politicians suggesting that the decline in the dollar rate is a result of halted projects, Minister Saeed provided clarification. He pointed out the financial challenges inherited by the current government, including increased debt relative to GDP due to currency printing. Minister Saeed emphasised President Dr. Muizzu's dedication to resolving these issues and revitalising the economy.
Moreover, Minister Saeed noted signs of economic recovery and a gradual depreciation of the dollar, attributing these positive developments to the government's decisive actions. He highlighted the unprecedented progress made in reviving stalled projects under the current administration.
The Maldives Monetary Authority (MMA) has acknowledged the government's efforts to enhance the economic landscape, noting their favorable impact. Measures such as halting currency printing and reducing expenditures have played a significant role in this regard.
Deputy Governor Ahmed Imad, speaking to the Parliamentary Committee on Public Accounts Committee reported that the government has received USD470 million out of an estimated USD2 million in grants and revenue as of March 14. He assured that these figures are consistent with initial estimates. Imad also highlighted a decrease in recurrent and capital expenditures, resulting in a reduction of total government spending by approximately USD130 million compared to the previous year.
While opposition members have raised concerns about halted government projects, President Dr. Muizzu clarified that budgetary protocols ensure adequate funding for ongoing projects. However, he acknowledged that this year's budget may not be sufficient to complete all projects.