Lawmakers Sound Alarm Over Economy as Revenue Declines

MALE’, Maldives— Senior members of Majlis on Monday warned of worsening economic conditions, with one cautioning that a continued decline in revenue could lead to a fiscal crisis.

Deputy Speaker Ahmed Nazim expressed concern over the government’s inability to reduce spending, despite efforts to implement long-overdue economic reforms. “This year’s revenue has fallen sharply,” he said during a Public Accounts Committee meeting. “If another quarter follows this trend, it will pose a major problem.”

Nazim also criticized inconsistencies in fiscal policy, pointing to a recent Finance Ministry decision to halt pension benefits for newly retired government employees; only to reverse the move after facing public backlash. The back-and-forth, he suggested, reflects deeper dysfunction in financial governance.

“We haven’t seen the economy improving yet,” he said. “Where there is no reduction in costs, there is no improvement in spending.”

Lawmakers urged President Muizzu to take immediate action on fiscal concerns. Qasim Ibrahim, chairman of the Public Accounts Committee, urged lawmakers to formally brief President Dr. Mohamed Muizzu on the country’s financial state. “The president wants the government to run properly, so we must tell him the best ways to do so,” he said.

Qasim Ibrahim, a veteran MP and businessman, argued that fundamental changes in government structure were needed to stabilize the economy, even if those measures proved unpopular. “If we don’t properly assess the economic situation, the wrong policies will only make things worse,” he warned.

Concerns over pension reform reflect broader economic strains. The committee has summoned the Finance Minister to clarify the government’s reform timeline, as pension disparities and budgetary strain remain unresolved. Nazim noted that under current rules, employees from different sectors, including police and military personnel, receive unequal retirement benefits, adding to the financial burden on the state.

“The issue of double pensions has remained unresolved for a long time,” he said. “This increases unnecessary government spending and deepens inequality.”

With government revenue already faltering, lawmakers now face mounting pressure to implement reforms before the situation worsens.

Both Nazim and Qasim are among the most senior lawmakers in the current People’s Majlis, bringing decades of experience in governance and policymaking. Having held key positions in Parliament and government, they have played a central role in shaping national economic policies and legislative reforms. Their concerns reflect a deep understanding of the country’s fiscal challenges and the structural changes needed to address them.