Finance Minister Announces HR Audit to Cut Government Staff Costs

Finance Minister Hassan Zareer announced today that an HR audit will be conducted to identify the actual number of employees required by government institutions, as part of measures to reduce state expenditure next year. Speaking at a meeting of the Budget Study Committee, Zareer stated that salaries and subsidies are the largest expenses in the budget, with 17.1 billion Rufiyaa allocated for salaries and benefits and an estimated 13 billion for subsidies in the proposed 2027 budget. He noted that the President has decided not to create new positions next year and that replacement will only be made for positions deemed absolutely necessary. The HR audit, to be conducted jointly by the Finance Ministry and the Pay Commission, will determine if current staffing levels are sufficient or excessive, and any excess employees will be redirected to areas where they are needed. However, the proposed budget shows an increase in salary and wage expenditure compared to previous years, from 6.6 billion Rufiyaa in 2025 to 7.9 billion in 2027, and employee benefits rising from 5.8 billion to 6.5 billion over the same period. Zareer also highlighted other measures to reduce expenditure, including reducing reliance on oil, making medical consumables sustainable, and cutting waste in the health sector.