Ministry of Finance Introduces Expenditure Controls

The Ministry of Finance has announced strict measures aimed at reducing additional expenses within the current state budget.

A circular issued by the Ministry mandates that government agencies must obtain pre-approval from the Ministry of Finance before hiring new employees. Further, all changes to employee salaries and the introduction of new allowances, even if included in this year’s budget, are now subject to Ministry approval. Additionally, government agencies have been directed to curtail overtime work outside of essential tasks.

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Other cost-saving measures outlined in the circular include restrictions on foreign travel, a suspension of new scholarships, limitations on repairs not covered within the recurrent budget, and a requirement for Ministry approval regarding employee promotions.

These actions align with the government’s broader efforts to reduce expenditures, with a particular focus on controlling subsidy costs and targeting assistance to those most in need. President Dr Mohamed Muizzu has emphasized the need to improve the state’s financial situation through careful expense control and stabilization measures.

Similar measures were also implemented by the previous administration in 2022, reflecting an ongoing emphasis on fiscal responsibility and expenditure management within the Maldives government.

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