In a post on social media X, (formerly twitter) President Muizzu said that the measures will include reducing the number of political posts within the administration and scaling back or cancelling unwarranted celebratory events.
President Dr Mohamed Muizzu has revealed a series of stringent measures to reduce public expenditure, particularly recurring expenses.
In a post on social media X, (formerly twitter) President Muizzu said that the measures will include reducing the number of political posts within the administration and scaling back or cancelling unwarranted celebratory events.
Steps within these measures include;
- Scaling back this year's Independence Day (falling on July 26) celebrations, with the exclusion of the usual float procession, reception and festivities
- Celebrations to be limited to the official function to mark Independence Day to resulting in considerable reductions in state expenses
President Muizzu said that the state will announce additional measures to further reduce public expenditure in the upcoming days.
The president announced special measures to cut government expenditure, some of which due to significant challenges being faced in seeking financing to deal with this year's budget.
Minister of Finance Dr Mohamed Shafeeq had also raised this concern during the parliament's Public Accounts Committee on Thursday.
The Minister said that the budgets passed in the last two years have major deficits, and this year it amounts to MVR 14 billion. He stated that cost cutting measures need to be put in place within the year at this time when spending from companies have risen markedly.
Shafeeq assured that the government will be taking the necessary steps to decrease spending, including decreasing subsidies being provided to state owned companies.
He highlighted that the companies are currently not run as efficiently as they should be, noting that actions need to be taken to reduce spending on the part of these companies as well.
The Minister said yesterday that the reforms to manage state owned companies will also begin within the next two weeks.
Members of the parliament, which holds a majority from the ruling party People's National Congress (PNC), have also called for a reduction in government expenditure.
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