Ministry of Finance has revealed that the government expenditures have reduced significantly compared to last year.
The latest weekly fiscal report publicised by the ministry indicates that by June 20, the expenses totalled to USD 1.1 billion, while during the same period last year, the government expenses mounted to USD 1.4 billion. It constitutes to a reduction of USD 285 million.
The report shows that expenditures have significantly been reduced, with USD 920 million spent on recurrent expenses and USD233 million on capital expenditures. It represents a significant reduction in expenditures compared to the USD 992 million spent by the government as recurrent expenses and USD 447 million as capital expenditures in 2023, during the corresponding timeframe. Recurrent expenses cover USD 356 million for salaries and pensions and USD 551 million for administrative work. Meanwhile, capital expenditure primarily encompasses expenses related to structural development.
President Dr. Mohamed Muizzu has announced a series of stringent measures aimed at reducing public expenditure, particularly recurring expenses. As such, the president announced several key measures, including a reduction in the number of political posts within the administration and scaling back or cancelling unwarranted celebratory events.
The administration has also halted the printing of Maldivian currency to improve the financial situation of the economy. The administration has also stopped taking loans with heavy repayment requirements. Instead, they have managed to pay public and private companies and make loan repayments from generated revenue without incurring new debt or printing more money.