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Gov't to establish system to provide subsidies to eligible individuals

Deputy Minister of Finance Ahmed Saaid Musthafa has announced the government's aim to establish a system where subsidies are available only to individuals that are eligible to them. The state budget for this year includes subsidy reforms aimed at reducing expenditure.

Speaking to PSM News, Deputy Minister Saaid explained the budget for this year includes amendments to subsidy reforms. He, however, said that when the current government took office, the work to implement these changes was incomplete. He noted that while the framework for these reforms was conceptually prepared when the budget was passed, the technical work and action plan were not finished by the time the current government assumed office.

Additionally, Deputy Minister Saaid said that the government is committed to subsidy reform in line with its principles, prioritising fiscal reforms that ensure government assistance reaches those who need it most. He assured that government financial assistance would be provided without discrimination to the poor individuals in the Maldives.

The latest statistics released by the government show that that the subsidy budget for this year is USD182 million, with USD110 million already spent. The national health insurance scheme, Aasandha, is expected to spend USD123 million this year, with USD60 million spent so far.