President announces changes to Economic Reform Agenda

President Dr Mohamed Muizzu has announced that major changes have been brought to the Economic Reform Agenda, with earlier plans to revise subsidies and pension policies now dismissed.

The President made this statement in response to a question posed by a Mihaaru News journalist at yesterday's 14 hour press conference at the President's Office.

MVR 8 billion was planned to be saved from the State Budget this year through streamlining subsidies, Aasandha, pension and other welfare schemes and decreasing expenditure on them.

A decision to cancel monthly allowances given under separate retirement schemes at some government institutions was also later reversed.

However, with no such work being evident five months into the year, Mihaaru News questioned the President about the delays in implementing these actions included in the Economic Reform Agenda.

In response, President Muizzu stated that the government is implementing the reforms they intend to carry out, with the rest no longer in the plans.

The President noted that under this, wasteful expenses within the Aasandha system is being reduced, as well as expenditure on medicine.

"But the remaining are not things we will be doing," he announced.

However, neither the President nor the Ministry of Finance have disclosed which of the measures in the Economic Reform Agenda are being scrapped.

President Muizzu went on to say that instead of the previously announced measures, savings in the budget will be through conducting the 2000 or so projects planned for the next two years by the government through SOEs with a minimal profit margin.

"For example, to construct a harbour, they might put down 50 million, including profit. But by conducting the project at cost, or nearly at cost, we are able to save MVR 15 to 20 million from this," he explained.

The President said that the projects will be conducted at cost through about five SOEs, under the oversight of the Finance Ministry. Additionally, the materials needed for the projects will be purchased in bulk through STO, which will further bring down costs, he added.

He said that the cost reduction previously planned through the welfare schemes can now be achieved through these measures.

"We are able to bring a balance. Instead of taking away something given to citizens, we are able to make the savings through running these projects under this new model. That is our plan."