Travel restrictions imposed as govt to submit spending cuts next week
Finance Minister Moosa Zameer said the Ministry of Finance has completed its review of areas where spending can be reduced.
Minister of Finance and Planning Moosa Zameer has stated that the government is implementing measures to reduce state expenditure and will submit a plan to the President within a week.
The minister made the statement on Wednesday during a press conference held at the President’s Office.
Zameer said the Ministry of Finance has completed its review of areas where spending can be reduced. He added that a team within the ministry is finalising the plan, following a working session held on Wednesday.
“We have identified areas where changes can be made to reduce costs. The plan will be presented to the President based on these findings,” he said.
As part of the measures already introduced, Zameer said ministries have been instructed to suspend travel funded by the state budget. He noted that the Ministry of Foreign Affairs is exempt for official engagements, while other travel will only be permitted if externally funded.
“We are not authorising travel unless it is externally funded. For other engagements, officials are advised to participate in meetings through online platforms,” he said.
Zameer stated that some measures may not be widely known as they had not been formally announced.
He added that the plan will also address the gap between revenue and expenditure, noting that available financing may vary due to current market conditions.
The minister said the government is considering projections indicating that financial conditions may take several months to stabilise.
Zameer stated that while key elements of the plan will be shared, the full document may not be made public due to market considerations.
Addressing the budget position, he said that the annual deficit has exceeded MVR 10 billion in recent years. He noted that the deficit was reduced to MVR 6 billion in the government’s first budget last year.
For the current year, Zameer said projections indicate the deficit may reach MVR 8 billion.
“My target was to keep the deficit lower, but given the current situation, it may be difficult to keep it below MVR 8 billion,” he said.
He did not confirm whether a supplementary budget will be submitted.
