News Desk
The Finance Ministry will submit a detailed plan to President Dr Mohamed Muizzu within a week outlining areas where government expenditure can be reduced and savings can be made, Finance Minister Moosa Zameer said today.
Speaking at a press briefing at the President’s Office, Zameer said a technical team at the ministry is currently finalising the framework. The plan will identify essential spending, areas where cuts are possible, and mechanism to manage financing during a period of high global volatility.
“Some mechanism must be introduced to finance the budget. The amount of financing available will also change with such high market volatility. I will take the plan to the President in the next few weeks,” Zameer said.
Analysts estimate that even if the fighting in the Middle East stops immediately, it will take at least four months for global markets to stabilise. Zameer said this outlook is being factored into the government’s planning.
He noted that the plan submitted to President Muizzu may not be made public in full, but key elements will be shared with the public once finalised.
The Finance Ministry had earlier estimated that the Maldives could lose USD 85 million in monthly revenue due to the war triggered by US and Israeli attacks on Iran, which has disrupted global shipping routes and affected tourism flows.
Despite the decline in revenue, Zameer said some expenditures cannot be reduced, while several development projects have already been postponed to ease fiscal pressure. He added that the government is taking “important but measured” steps to protect the economy during this period of uncertainty.
