Cost-cutting Policies Set to Roll Out in July, Says Finance Minister

The newly appointed Minister of Finance, Dr. Mohamed Shafeeq, has announced plans to implement cost-cutting policies, scheduled to take effect from July, next year.

With the upcoming budget estimated at MVR 49.6 billion, and anticipated expenditures reaching MVR 47.3 billion, Minister Shafeeq emphasised the need for a strategic shift in policies to curtail costs.

advertisement

advertisement

advertisement

advertisement

Minister Shafeeq outlined three key policies aimed at reducing expenditure:

Conversion of indirect subsidies to direct subsidies targeting those most in need.

Review of the healthcare system.

Strengthening the government welfare assistance system.

These proposals, informed by research conducted in collaboration with international financial institutions such as the IMF and the World Bank, are integral to the government’s strategy.

The implementation of these policies, slated to commence in July, aims to bring about a reduction in government expenditure. Shafeeq asserted that merely exercising budgetary control, without fundamental policy adjustments, would not yield the desired results.