MDP: 2025 budget proposes 8,782 additional hires; 37% increase in payroll cost

The 2025 state budget submitted by the incumbent People’s National Congress (PNC) administration proposes hiring an additional 8,782 employees next year, says Ibrahim Ameer, a top politician from the main opposition Maldivian Democratic Party (MDP), estimating that the additional hires will result in a 37 percent increase in payroll costs compared to 2023 – the last year of the MDP administration, in which he served as finance minister.

In a press briefing held by the MDP on Thursday, Ameer said that it will cost MVR 14 billion to pay salaries to 50,000 employees. He said that the number of employees will increase to 51,605 next year.

Ameer said the incumbent administration already has 2,280 political appointees, which he said is double that of 2023.

He questioned whether the PNC administration plans on making more political appointments next year.

“At a time when the government needs to implement fiscal consolidation measures, they have proposed adding another 8,782 employees in next year’s budget. This increases expenses by 37 percent compares to 2023,” he said.

He alleges that many of these 8,782 employees are political appointees.

Ameer said that the more ministries and embassies the government opens and the more employees the government hires, the more it will increase the demand for US dollars and increase the exchange rate.

Ameer said that the PNC administration does not have the capacity to implement and achieve the planned fiscal reforms, including Aasandha reforms and moving from indirect to targeted subsidies.