Delayed measures threaten cost-cutting efforts: Audit Report

The Auditor General's Office reported that it will be challenging to reduce the expected MVR 2.7 billion from the budget due to delays in implementing the expenditure reduction measures outlined in the previous year's Medium-Term Fiscal Strategy Report.

The report highlights that these measures have not been met because the government has not taken sufficient actions to achieve them, and the developed policies have not prioritized those necessary to meet the targets set in the Fiscal Strategy Report.

Additionally, the audit report pointed out that there will be difficulties in achieving the targeted reduction of MVR 12 billion in government expenditure over the medium term, also due to delays in implementing the necessary measures.

The report further noted discrepancies between the contents of last year's Medium-Term Fiscal Strategy Report and this year's budget.

According to the Auditor General's Office, the revenue enhancement measures proposed last year are still in the planning stages, resulting in revenue levels not reaching the expected targets.

The Medium-Term Fiscal Strategy also included plans to generate government revenue through the sale of carbon credits, with an estimated MVR 863 million expected to be earned from these sales over the next two years, including this year. The Maldives Fund Management Corporation (MFMC) is projected to receive MVR 1.2 billion as dividends this year.

The Audit Office also stated that the provisions outlined in the Medium-Term Fiscal Strategy have not been reflected in the Budget Book.