Govt submits spending cuts to parliament
The cost-cutting measures are projected to save MVR 6.6 billion from this year's budget.
The government has submitted a set of measures aimed at reducing public spending under the economic reform agenda to parliament for approval.
The proposed measures include salary reductions for public servants:
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A 10% deduction from the salaries of political office bearers.
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A 10% deduction from the salaries of employees of government-owned companies, except banks.
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A salary cap of MVR 90,000 for government company executives.
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A request for a 10% salary deduction from senior judicial officials and members of parliament.
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A 10% deduction from the salaries of senior officials of independent institutions.
The measures will not affect employees earning MVR 12,000 or below. These salary reductions are set to be implemented for two years starting this year.
As part of the cost-cutting initiative, thepPresident has decided to reduce his own salary by 50%, receiving MVR 50,000. The Speaker of Parliament, Abdul Raheem Abdulla, has also opted for a 50% salary reduction.
The measures are scheduled to be submitted to parliament tomorrow for approval, after which they will be referred to the relevant standing committee.
Additionally, the names of the Elections Commission (EC) Chairman, Vice-Chairman, and the Anti-Corruption Commission (ACC) Vice-Chairman will be submitted to the relevant committee of the parliament. This will be the first appointment of commission members since the amendment granting the president the authority to appoint the Chairman and Vice-Chairman.
The cost-cutting measures are projected to save MVR 6.6 billion from this year's budget.
