Minister of Finance Moosa Zameer has announced that the government will implement reforms to the subsidy-issuing system in phases, with a focus on ensuring these changes do not place undue pressure on residents. The statement was made during the minister’s address to the Parliament’s Budget Committee, where he was joined by the Governor of Maldives Monetary Authority (MMA), Ahmed Munawwar, and Auditor General Hussain Niyaz.
Minister Zameer highlighted that the government’s priority is to manage state expenditures while safeguarding the well-being of citizens. As part of the 2025 state budget currently under parliamentary review, one of the significant reforms proposed involves adjustments to the health insurance system. The budget plans to extend private insurance coverage to families of the Maldives National Defence Force (MNDF) and the Maldives Police Service (MPS), aiming to optimise government spending. Additionally, the reform will enable individuals to utilise the national insurance scheme, Aasandha, if their private insurance does not fully cover their healthcare expenses.
Regarding subsidy reforms, Minister Zameer stressed that the gradual approach was chosen to minimise disruptions in the lives of residents. He noted that a testing phase will precede the full rollout, ensuring a seamless transition. The objective of these changes is to direct subsidies to those most in need, with the first phase of implementation scheduled to commence in April 2025.
The finance minister expressed optimism that the reformed subsidy system would contribute to increased national prosperity by ensuring resources are allocated more efficiently to benefit those who require support the most.
