Finance Minister Prepares Special Cost-Cutting Plan for Presidential Review

Finance Minister Moosa Zameer has announced that his ministry is developing a targeted cost-cutting plan to present to President Mohamed Muizzu. Key government sectors are now being identified for potential spending reductions. Speaking at a press conference at the President's Office, Minister Zameer stated that initial expenditure control measures have already been applied within the current budget framework. He reported that the budget deficit has been reduced compared to the past five years. However, he warned that while the present deficit stands at USD 389.10 million, the ongoing conflict in the Middle East could potentially increase it to USD 518.8 million. The proposed special plan focuses on containing recurrent government expenditure. The review includes areas such as recruitment and other operational costs. "Our team is exploring measures to contain recurrent costs and generate savings," said Minister Zameer. "Within the budget, hiring and several other areas are being assessed. I have prepared a list of proposed changes to present to the President. With his guidance, the implementation of these changes will result in savings." He emphasised that implementing such fiscal changes requires careful analysis, as potential losses in revenue and strategies to finance any reduced expenditure must both be considered. The Minister stated the plan will be submitted to the President within a week, after which the government will announce the specific measures to be implemented. As an immediate step in the cost-cutting initiative, overseas government travel has been suspended. All government institutions and agencies have been advised to conduct meetings virtually where possible. An exception has been made for the Minister of Foreign Affairs, whose travel is deemed necessary to fulfil official diplomatic duties. Despite the austerity drive, Minister Zameer reaffirmed that critical health and housing initiatives will remain government priorities. He added that all cost-cutting measures will be implemented in a manner that ensures the continued provision of essential public services to the Maldivian people.