The Maldivian government will conduct a comprehensive human resources audit across state institutions next year to assess staffing requirements and curb recurrent expenditure, Finance Minister Hassan Zareer announced today.
Speaking before parliament’s Budget Review Committee during deliberations on the proposed state budget, Minister Zareer outlined a series of austerity measures aimed at reducing public spending, with a primary focus on the civil service payroll. Under the planned initiative, the Ministry of Finance and the National Pay Commission will evaluate current staffing levels against institutional needs. Where audits identify surplus personnel, authorities will redeploy staff to under-resourced departments rather than recruit new workers.
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“The President has decided not to create any new posts next year,” Minister Zareer told lawmakers. “Furthermore, the government will recruit replacements only for strictly essential positions.”
Minister Zareer noted that civil service compensation and state subsidies continue to consume the largest share of public funds. According to the minister, the upcoming budget allocates MVR 17.1 billion for salaries and statutory allowances, while state subsidies will absorb approximately MVR 13 billion.
Beyond civil service reform, the government plans to target other major spending drivers. Minister Zareer highlighted initiatives to reduce national dependence on imported fuel and reform the procurement and management of medical consumables to eliminate waste in the public healthcare sector.
Despite the administration’s pledge to restrain recurrent spending, figures submitted in the medium-term budget framework indicate an upward trajectory for public sector employment costs. Projections show baseline salaries and wages rising from MVR 6.6 billion in 2025 to MVR 7.5 billion in 2026, reaching MVR 7.9 billion by 2027. Employee allowances reflect a similar trend, increasing from MVR 5.8 billion in 2025 to MVR 6.3 billion in 2026, and MVR 6.5 billion in 2027.
The Budget Review Committee will continue its line-by-line review of the administration’s fiscal proposals over the coming weeks before submitting the final bill to the parliamentary floor.
