Maldives government has saved MVR 2.5 billion in public finances in 2024, owing to strong austerity measures, according to the Minister of Finance Dr. Mohamed Shafeeq.
At the Public Accounts Committee of the Parliament, the minister said stressed on the positive outcome of the cost-cutting measures initiated by the current administration. While the state has saved MVR 2.5 billion in state finances, Shafeeq said further reforms are necessary to initiate crucial plans in the government’s pipeline.
The minister noted of heavy wastage in few public sectors, and emphasized the need for immediate reforms to ensure streamlined and cost-efficient operations of state-owned enterprises (SOEs).
Highlighting current difficulties state face in budget financing, Shafeeq asserted that delays in reforms could pose further setbacks to the state. The government intends for reforms by mid 2024; and with the sixth month running, it is expected the state will be putting these reforms into action soon.
Shafeeq said the government conducted a survey on the SOEs, and formulated an action plan to better manage them. He added that the major concerns have been directed towards the operations of Fenaka Corporation and Road Development Corporation (RDC) – both of which have notable financial setbacks.
The action plan, Shafeeq said, has helped RDC save an average of MVR 17 million on a monthly basis.
A reform agenda was approved at Sunday’s cabinet meeting to drive up state revenues while subsequently cutting its expenses. The minister they are now working on developing a timeline to implement the agenda.