Saleem: State earns enough income, shouldn’t cut subsidy

Eydhafushi MP Ahmed Saleem (Redwave Saleem) – who belongs to ruling political party – Progressive Party of Maldives (PPM) – has said that the State was generating income as never before, and that it was therefore wrong to cut subsidies.

An emergency motion was filed during the People’s Majlis meeting this Thursday, regarding government’s decision to cut subsidies to the general population on staple products and provide it exclusively for the poor.

Speaking during the debate on the motion, MP Saleem said that the people deserved the subsidy they had been getting during worse times.

“During President Maumoon’s presidency, it was budgeted even in the MVR 150 million budget. It was being provided when the budget was one billion, three billion. Maldives is generating income as never before. So why should price of staple products be increased now?” asked Saleem during the debate.

He said that it was the responsibility of the government to provide staples at a low cost to the people, and to even give it for free – if necessary.

Saleem said that subsidies could be funded from rent revenue from the 500,000 square foot land leased to State Trading Organization for such a low price.

“The Maldivian people are renting atoll shops for MVR 60 or MVR 70 per square foot. Next to it, they [STO] is there for MVR 0.50 or MVR 1 per square foot,” said Saleem.

Managing Director of STO, Ahmed Shaheer said recently that the company was working on lowering the price of staple products they import and re-sell.

Subsidy-free, the price of one kilo of rice has risen from MVR 3.98 to MVR 7.96, the price of one kilo of sugar from MVR 4.50 to MVR 8, and price of one kilo of flour from MVR 3.50 to MVR 5.96.

The prices are higher in the atolls.