New Reforms to Improve Maldives’ Financial Health: Finance Minister

Minister of Finance Dr Mohamed Shafeeq has announced that the government is set to introduce a series of reforms to improve the state’s financial situation. This statement came during a meeting to discuss the World Bank’s “Scaling Back and Re-Building Buffers” report on the Maldives.

Addressing the report’s findings, Dr Shafeeq acknowledged that the economy had not grown as expected by the end of the previous year. He attributed this stagnation to the government’s failure to implement the planned reform measures during the year. 

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“The economy has not grown as expected due to the lack of reform programmes,” he said. “However, we are now preparing numerous reform measures.”

The World Bank report highlighted that while the tourism industry saw significant growth last year, the overall economy slowed down. The report noted that despite increasing tourist arrivals, national productivity did not see a corresponding rise, largely due to decreased tourist spending within the Maldives.

Dr Shafeeq emphasised that the government is prioritising the reduction of government expenditure. The forthcoming reforms will include changes to the subsidy system and the Aasandha system, along with modifications in the management of government-owned companies.

The Finance Minister also reported that the government’s revenue aligns with this year’s estimated figures. He assured that the insights from the IMF and World Bank reports would be instrumental in preparing the budget for the next year.

These reforms are anticipated to enhance financial stability and foster economic growth, focusing on sustainable development and improved fiscal management. These reforms’ specifics and implementation timelines are expected to be detailed in the coming months.

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