Gov’t Revises Air Ticket Procurement Policy to Curb State Expenditure

The government has implemented a significant change in the policy governing the purchase of air tickets for official purposes by government offices, aimed at reducing state expenditure.

In a circular signed by Finance Minister Dr. Mohamed Shafeeg and sent to government offices on Tuesday, the nullification of a policy set in place in January 2016 was announced. 

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This previous policy required all official visits undertaken to foreign destinations by government offices to be arranged via Island Aviation Services Limited’s travel division, Maldives Holidays.

The revised policy stipulates that tickets to destinations not served by Maldivian will be purchased from the airline offering the cheapest fares, considering options from airlines traveling directly to the destination. This change is also effective from Friday.

Statistics indicate that the current administration’s travel expenses to foreign nations since assuming office in November have increased to MVR 108.1 million. A total of MVR 228.4 million has been allocated for travel expenses in this year’s budget, with total travel expenses so far this year standing at MVR 120.6 million.

Notably, according to the President’s Office, President Dr. Mohamed Muizzu and his delegation’s recent official visit to India to attend the inauguration ceremony of Prime Minister Narendra Modi’s second term cost MVR 1.4 billion from the state budget.

The current state of the Maldives’ economy has prompted the government to adopt stringent cost reduction measures, including cutting down political posts and cancelling events planned for this year’s Independence Day celebrations.