Govt sees MVR 6.6 billion savings from reforms in 2025 budget
Finance minister Zameer presented the budget to parliament, marking the government’s first budget presentation under President Muizzu.
Government on Thursday announced a planned savings of MVR 6.6 billion in the 2025 budget, implementing measures aimed at reducing public expenditure.
Finance minister Moosa Zameer presented the budget to parliament, marking the government’s first budget presentation under President Mohamed Muizzu.
The expenditure reduction plan involves five primary measures:
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Shifting to a direct subsidy system, targeting assistance to those in need of support
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Reviewing and transforming the Aasandha health insurance scheme to align with environmentally friendly and sustainable practices
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Implementing strategies to address fiscal challenges arising from oil price increases
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Reviewing state-provided pensions to prevent overlap and unnecessary costs
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Initiating reforms for State-Owned Enterprises (SOEs)
The measures form part of a broader fiscal strategy to streamline spending and ensure more targeted use of public funds.
Outlined revenue-increasing measures include:
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Raising import duties on cigarettes and introducing a bidding process
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Increasing airport tax and associated fees
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Adjusting green tax rates
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Introducing a fee for private sand dredging projects
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Increasing the Tourism Goods and Services Tax (TGST) TGST rate
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Fully implementing the destination principle in the GST system
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Levying a frequency spectrum charge
The finance ministry also noted that a total of MVR 11.5 billion in fiscal reforms are embedded within the budget for 2025. These reforms and measures aim to stabilise and strengthen the nation’s financial standing while pursuing targeted development initiatives across key sectors.
