President Dr Mohamed Muizzu has revealed that the government will reduce the number of politically appointed positions to reduce recurring state expenses. The President announced a message on X outlining stringent measures to slash recurring public expenditures.
The cost-cutting move intends to lower payroll expenses, which comprise most of the government’s recurrent expenditure.
In addition to cutting political posts, President Dr. Muizzu revealed plans to scale back unwarranted celebratory events. This year’s Independence Day celebrations will be markedly reduced, with the traditional float procession, official reception, and various festivities cancelled. The celebrations will be limited to the official function marking Independence Day, a move projected to yield considerable savings for the state.
President Dr Muizzu hinted that these actions are just the beginning, and more measures to reduce public expenditures will be announced soon.
Meanwhile, the World Bank has warned of the Maldives’ rising debts, emphasising that ongoing economic growth or additional financing alone would not resolve these issues. The World Bank advised essential expenditure cuts to reduce fiscal and current account deficits – a move crucial to support the Maldives Monetary Authority (MMA) reserves and improve the country’s debt situation in the medium term.
