In a recent parliamentary meeting session with International Monetary Fund (IMF) officials, Qasim Ibrahim, Chair of the Parliament’s Public Finance Committee and Member of Parliament for Maamigili constituency, emphasized that the current economic challenges facing the Maldives were inherited by the present administration. He highlighted the government’s commitment to reducing expenses to bolster the nation’s financial health.
Qasim noted that the government continues to borrow funds to enhance citizens’ living standards, a practice also observed in previous administrations. However, he underscored that the current government has implemented significant measures to cut state expenditure and is actively pursuing additional strategies.
ރައްޔިތުންގެ މަޖިލީހުގެ މާލިއްޔަތު ކޮމީޓީ އަދި އިޤްތިޞާދީ ކޮމިޓީއިން އިންޓަރނޭޝަނަލް މަނިޓަރީ ފަންޑް (އައި. އެމް.އެފް)ގެ ބޭފުޅުންނާ ބައްދަލުކުރެއްވުން pic.twitter.com/qTL3uBriqf
— People’s Majlis (@mvpeoplesmajlis) February 12, 2025
Under President Dr. Mohamed Muizzu’s leadership, several ministries and state-owned enterprises have been consolidated, and certain salaries have been reduced. The President has also proposed salary reductions for senior officials in the judiciary, members of parliament, and heads of independent institutions, with the Finance Committee currently reviewing these proposals.
Qasim further highlighted President Muizzu’s proactive stance against corruption, noting that efforts to reduce expenses across all government sectors are already yielding visible results. Consequently, the budget deficit is expected to decrease significantly.
These developments come in the wake of international concerns regarding the Maldives’ financial stability. In October 2024, the World Bank emphasized the urgent need for comprehensive economic reforms to address fiscal and external imbalances, build investor confidence, and reduce debt over the medium term.
The government’s recent initiatives reflect a concerted effort to address these challenges and steer the Maldives toward a more sustainable economic future.
