Governor of the Maldives Monetary Authority (MMA), Ahmed Munawwar, has emphasised the urgent need for a more effective system to accurately identify those most in need of subsidies. Speaking at the Parliament’s Budget Committee, the governor highlighted that while recent subsidy reforms have been beneficial, they require meticulous planning to ensure their effectiveness.
Munawwar stressed that establishing a comprehensive database of all households is essential to precisely determine which groups require government support. He explained that better data collection would allow the government to allocate subsidies more efficiently, ultimately benefiting those who genuinely need assistance.
Concerns Over Increasing Student Loan Costs
In addition to discussing subsidy reforms, Munawwar expressed concerns about the sharp rise in student loan costs. The governor noted that these costs have surged from USD 16 million to USD 52 million, which is exerting significant pressure on the nation’s foreign reserves. He called for immediate measures to address this financial strain to prevent further depletion of reserves.
Focus on Boosting Tourism Amid Airport Expansion
Munawwar also highlighted the importance of increasing tourist arrivals, especially with the imminent opening of the new passenger terminal at Velana International Airport (VIA). He pointed out that the national budget must be prepared to accommodate the expected influx of tourists, as this sector remains a vital source of revenue for the Maldivian economy.
The governor’s remarks reflect the broader challenges the Maldives faces in balancing social welfare initiatives with fiscal sustainability, as the nation continues to prioritise economic growth and development.
