Pledges carry cost, but no fear of economic crisis, govt says
"Overall, these efforts are being made to provide services to the people. Of course, there will be costs," Firzul said.
By
Ahmed Mizyal
While some of the government's decisions have increased costs, efforts are also being made to increase revenues and there is no fear of an economic crisis, the President's Office said on Thursday.
At a press conference held by the President's Office on Thursday, Atoll Times raised the question why the government is increasing the number of key positions and making policy-level decisions in a way that increases costs and burdens the budget at a time when financial institutions in the country and abroad have expressed concern over the country's economic situation and suggested cutting costs
Undersecretary for Public Policy Mohamed Firzul Abdullah Haleel said that not all decisions stand to increase expenditure.
"The refinancing works will also be included in the week 14 agenda. A plan has been developed and work is underway," Firzul said.
Firzul said, for example, the acceleration of the Zakat House and the new terminal project at Velana International Airport are aimed at increasing revenue.
Firzul said the budget accommodates action in other directions or other things.
"Overall, these efforts are being made to provide services to the people. Of course, there will be costs," Firzul said.
"At the same time, the President is working with hope and confidence to further strengthen the budget and focus on increasing Maldives's revenue to facilitate the achievement of the targets set in the fiscal strategy”.
When asked whether he was sure that Maldives would not face an economic disaster due to the government's decisions, Firzul said there was no such fear.
"We can overcome the current situation and reach a better situation. There is no reason for us to believe that there is a threat of that [economic crisis]," Firzul said.
Maldives currently has enough reserves to import enough supplies for about 1.9 months.
In addition, USD 200 million in budget support is needed to cover this year's expenditures, according to the recently passed supplementary budget. The money has been recovered but has not yet been received.
