Regional Airport Merger Saves State Budget USD 648,500 Every Month

Regional Airport Merger Saves State Budget USD 648,500 Every Month

World ·
The merger of the Regional Airports Company Limited into the Maldives Airports Company Limited (MACL) is saving the state budget approximately USD 648,500 per month, Finance and Public Enterprises Minister Hassan Zareer announced during a parliamentary session. Addressing lawmakers, Minister Zareer explained that the monthly savings stem from the elimination of state-funded operational costs and employee salaries previously required to sustain the Regional Airports Company. The government is now working with MACL to transition these regional hubs into self-sustaining entities that operate using their own generated revenue. This consolidation is part of a broader strategic effort to streamline state-owned enterprises (SOEs). The Minister revealed that the government is actively reducing the number of state companies and consolidating those that are consistently loss-making. As part of this initiative, the Maldives Sports Corporation has already been dissolved after failing to meet its objectives. Additionally, a liquidator has been appointed to oversee the dissolution of the Maldives Integrated Tourism Development Corporation (MITDC). Providing an update on recent organizational changes, Minister Zareer noted that five newly established state companies now employ 889 people. A significant portion of this workforce—733 employees—consists of staff transferred from the pharmaceutical division of the State Trading Organisation (STO) to the newly formed State Pharmaceuticals and Medical Supply Corporation. Regarding the national budget, the Minister highlighted two primary drivers of increased recurrent expenditure: the harmonization of state salaries and a threefold increase in fuel costs triggered by conflict in the Middle East. Minister Zareer concluded by emphasizing that the government remains committed to implementing rigorous measures to increase state revenue while aggressively reducing unnecessary expenditures to stabilize the nation's financial outlook.