Govt. announces major steps to reduce expenditure; promotions subject to approval

Finance Minister Dr. Mohamed Shafeeg. (Photo/Finance Ministry)

Finance Ministry has announced major steps to reduce expenditure to overcome the financial obstructions faced by the Maldives.

Prevalent financial obstructions have posed major difficulties to the nation – particularly making the inflow of foreign currently difficult.

Finance Ministry, in a circular on Friday, has instructed to reduce expenditure through seven main aspects; promotions to staff, official trips, introduction of new allowances and similar aspects in this trajectory.

The Finance Ministry has banned certain expenditure without the approval of the Ministry.

With respect to staff expenditure, the Ministry has instructed against:

  • Creating new posts without approval
  • Changes to salary framework without approval
  • Introducing an allowance that is currently not in place even if the budget allows
  • Any sort of promotions without approval
  • Overtime work for purposes that are not mandatory

In addition to this, the Finance Ministry has also instructed to seek the Ministry’s approval before undertaking any official visits.

However, domestic visits in the Maldives costing MVR 35,000 can be undertaken with the approval of the finance executive. However, domestic visits costing over MVR 35,00 will require the approval of the Finance Ministry.

Similarly, operational costs of offices also require approval from the Ministry.

Other crucial steps announced the Ministry include:

  • Halt in issuance of new scholarships other than national-level scholarships
  • Halt of conducting training programs that are not necessary
  • Approval of the Ministry for renovations costing above MVR 35,000 

The steps have been announced after President Dr. Mohamed Muizzu earlier remark that he has instructed the government to cut down expenditures.