In a bid to address the economic challenges posed by the country’s significant state debts, the Maldivian government has issued a directive to City Councils, Atoll Councils, and Island Councils to temporarily suspend trips, ceremonies, and sports events. This measure aims to reduce state expenditure and alleviate financial pressures.
On Wednesday, Minister of Cities, Local Government, and Public Works, Adam Shareef, outlined a series of cost-cutting measures in a directive sent to the councils. The letter emphasised the need to prioritise the reduction of recurrent or operating expenses.
The directive instructed councils to strictly limit their expenses to essentials only. Specific measures include:
• Avoiding unnecessary overseas trips
• Holding only essential ceremonies relevant to specific occasions
• Temporarily suspending all ceremonies and sports events
• Conducting online meetings with central government agencies instead of travelling to the capital, Malé
“I thank the councils for their cooperation and efforts in reducing recurrent expenditure and addressing state debts,” the letter read.
Despite these directives, Deputy Speaker of Parliament Ahmed Nazim raised concerns over some Atoll Councils continuing to undertake unnecessary trips to destinations such as Dubai, Turkey, and Bangkok. This behaviour contradicts the government’s efforts to curtail spending.
Given the current economic situation in the Maldives, the government has decided on several measures to reduce public expenditure. This includes cutting down the number of political positions and minimising costs associated with ceremonies held on various occasions.
The government’s directive is a part of a broader strategy to demonstrate fiscal responsibility and seriousness in tackling the nation’s financial issues, aiming to gain confidence from international financial institutions and other stakeholders.
The Ministry of Cities, Local Government, and Public Works will continue to monitor the implementation of these measures to ensure compliance and effectiveness in reducing state expenditure.
