Govt to reform subsidies to direct aid to neediest citizens

Government has proposed changes to the subsidy system to provide direct support to citizens in need, aiming to enhance the efficiency of public spending.

Announcing the proposed budget for the coming year, finance minister Moosa Zameer highlighted this subsidy reform as part of broader cost-cutting measures aimed at reducing government expenditure.

Under the revised system, subsidies will be provided directly to those assessed as most in need, shifting from the current practice of allocating subsidies to state-owned companies that offer basic services.

"Rather than continuing the subsidies provided to companies offering essential services, next year’s budget proposes a system that identifies and assists the neediest Maldivian citizens directly," the minister explained.

In addition to the subsidy reform, the budget introduces plans to review the Aasandha health insurance scheme, with the goal of making it more sustainable.

The total budget for next year is projected at MVR 56.6 billion, including the following key figures:

According to the finance ministry, the proposed budget includes MVR 11.5 billion in fiscal reforms as part of the government’s strategy to strengthen financial sustainability.