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Finance minister highlights risks of insufficient budget allocations

Minister of Finance Moosa Zameer has voiced concerns that inadequate financial allocations for development projects could lead to significant delays and hinder long-term progress. The minister made these remarks during the ongoing parliamentary debate on the state budget 2025.

Speaking during the debate, Minister Zameer cautioned that spreading the budget thinly across numerous projects without allocating sufficient funds would impede their progress. He warned that this could result in stagnation or minimal advancements due to cash flow constraints. Referencing projects contracted by the previous administration to the Maldives Transport and Contracting Company (MTCC), the minister noted that many initiatives, valued at USD 1.2 billion, remain stalled due to a lack of secured financing. He assured that the new budget would prioritise securing the necessary funding to ensure successful project implementation across the nation.

Minister Zameer also highlighted the government’s commitment to expanding financial services, announcing plans to establish ATMs on all inhabited islands by the end of the year. This initiative aligns with the administration’s broader objectives to enhance accessibility and convenience for citizens.

In addition, the minister reiterated the government’s focus on improving transparency in state-owned enterprises. He suggested that merging companies offering similar services could enhance performance and efficiency.

Turning to healthcare reforms, Minister Zameer commended the changes made to the national health insurance scheme, Aasandha, which aim to reduce wasteful expenditures. He expressed optimism that these reforms could generate savings of up to USD 32 million, contributing to the government’s broader fiscal objectives.

The minister concluded by reaffirming the government’s dedication to addressing fiscal challenges and ensuring the effective utilisation of resources to drive national development.