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Challenges to cashflow management: Shafeeq

Mohamed Rehan
21 November 2023, MVT 08:54
Minister of Finance Mohamed Shafeeq at Tuesday's budget committee meeting at the parliament-- Photo: Mihaaru
Mohamed Rehan
21 November 2023, MVT 08:54

Minister of Finance Dr Mohamed Shafeeq notifies of significant challenges in government cashflow management for the next two months.

He said that the government has already launched discussions with foreign countries to resolve the issue.

The minister, on his first time issuing a statement since his ministerial appointment, said at the parliament's budget committee that the government requires over USD 200 million to manage the cashflow for the next two months.

He assured efforts are already underway to acquire the amount.

"There are several challenges. Our alternative is to communicate with commercial banks and private sectors who purchase T-Bills towards stronger management in these two months. While this is still the third day since the new government assumed power, we have launched discussions mainly with Middle-Eastern countries [for assistance]," Shafeeq said.

Shafeeq said he met with foreign delegations that attended the presidential inauguration, and discussed with them about the current situation of the government. He added that some representatives of these countries gave positive responses.

According to the minister, the country's economic condition was frail. But highlighted that the government has planned to overcome the economic hurdles gradually, with the prompt implementation of subsidy reforms as part of the state's austerity measures.

The budget report for 2024 highlights subsidy reforms were required to be in effect by July next year. The government allocated MVR 600 million for the upcoming year to target specific subsidies.

The ministry said that the subsidy policy has been reformed to benefit 65 percent of the local population.