In a move to reduce state expenditure, the government has amended the policy governing the purchase of air tickets for official purposes by government offices. A circular signed by Finance Minister Dr. Mohamed Shafeeg, issued on Tuesday, announced the nullification of a policy set in January 2016. The previous policy mandated that all official travel to foreign destinations by government offices be arranged through Island Aviation Services Limited’s travel division, Maldives Holidays.
The nullification of this policy will take effect from Friday onwards.
The new policy, detailed in the circular, stipulates that tickets to destinations not operated by Maldivian airlines will be purchased from the airline offering the cheapest fares, considering direct travel options to the destination. This change is also effective from Friday onwards.
Statistics reveal that travel expenses for foreign trips by the current administration since assuming office in November have increased to MVR 108.1 million. The total budget allocation for travel expenses this year is MVR 228.4 million, with expenditures already reaching MVR 120.6 million.
Notably, the President’s Office reported that President Dr. Mohamed Muizzu and his delegation’s recent official visit to India, to attend the inauguration ceremony of Prime Minister Narendra Modi’s second term, cost MVR 1.4 billion from the state budget.
In light of the current economic situation, the Maldives government has introduced stringent cost reduction measures. These include cutting down on political posts and cancelling events planned for this year’s Independence Day celebrations.
The revised policy on air ticket purchases is part of broader efforts to ensure more efficient use of state resources and reduce unnecessary expenditures amid the challenging economic environment.
