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Nasheed cancels two overseas trips to cut back cost

Lamya Abdulla
22 June 2022, MVT 08:35
(FILE) Parliament Speaker Mohamed Nasheed speaking at the parliament on February 28, 2022: Nasheed has cancelled two oversea trips as Finance Ministry has instructed all state institutions to not make expenses above MVR 5,000 -- Photo: Parliament
Lamya Abdulla
22 June 2022, MVT 08:35

Parliament Speaker Mohamed Nasheed said on Tuesday that he intends to cancel two of his official trips after Finance Ministry issued a circular instructing state institutions to cut back on expenditure.

Starting yesterday's session, Nasheed said the parliament also received the ministry’s circular calling to reduce expenditure.

He said he had received invitations to visit the Commonwealth and Uzbekistan as well, but he will be cancelling both trips in order to reduce expenditure.

“I have decided to cancel both the trips. The circular stated not to make any expense over MVR 5,000. [I] can only go to Kolhunbu then,” Nasheed had said.

Finance Minister Ibrahim Ameer signed the circular and sent to all state authorities, stating that state expenditure swelled due to the Russian-Ukrainian war.

He had requested cooperation in order to not burden the state budget further at this time in order to reduce expenditure.

Some steps taken to reduce cost

- Only take services that are required to manage the company

- To not start new scholarships and to halt all training except short scholarship courses provided by foreign countries and institutions

- Not carry out any repairs other than those required to ensure that the work is underway or that the service is not interrupted.

- Not to make any capital expenditure except for the capital allocated in in PSIP.

- To obtain finance ministry’s permission if any of the aforementioned exceptions go above MVR 5,000.

The circular, sent on Sunday, came into effect from Monday onwards. Island councils will also have to follow the circular as per spending block grants and spending income generated on their own as well.