Maldives could save MVR 70m by abolishing agriculture ministry

The resignation of Dr Aishath Rameela, the Minister of Agriculture and Animal Welfare, due to health reasons has created an unexpected vacancy in the Maldivian cabinet. While President Mohamed Muizzu has yet to appoint a successor, this situation offers a unique opportunity to address long-standing concerns about the size and cost of the government. Specifically, it raises the question: Should this be the moment to merge ministries and reduce administrative expenses in line with austerity measures?

Historically, agriculture has not been managed by a standalone ministry in the Maldives. In past administrations, the Ministry of Fisheries also handled agriculture. President Muizzu’s decision to create a dedicated Ministry of Agriculture aimed to prioritise the sector, but it has come with significant financial implications.

The approved 2024 budget for the Ministry of Agriculture stands at MVR 75.6 million, an increase of MVR 14.6 million from 2023. Alarmingly, over 57% of this budget (MVR 43.1 million) is allocated to administrative expenses rather than directly funding agriculture development or animal welfare. These figures highlight the inefficiencies of maintaining a separate ministry.

If the Ministry of Fisheries and the Ministry of Agriculture were to merge, significant savings could be achieved. Redundant administrative costs would be eliminated, freeing up resources for the actual development of agriculture and fisheries, aligning with the government’s policy of fiscal responsibility.

A comparison with Sri Lanka further underscores the need for reform. Despite having a population of 22 million and a larger geographic footprint, Sri Lanka operates with just 21 ministries in its current government. The decision to limit ministries was part of their effort to navigate a financial crisis, demonstrating a commitment to cutting unnecessary expenses.

In stark contrast, the Maldives, with a population of approximately 500,000, maintains 22 ministries. This is disproportionate for a small, resource-constrained island nation. Former President Ibrahim Mohamed Solih concluded his term with only 18 ministries, setting a precedent for a leaner cabinet.

Beyond the Ministry of Agriculture, there are several areas where merging ministries could yield savings and improve efficiency:

If implemented, such measures could reduce the cabinet to just 16 ministries. This would not only save administrative costs but also improve coordination and resource utilisation.

Merging ministries would also be a symbolic step for President Muizzu to demonstrate his administration’s commitment to fiscal prudence. At a time when global and domestic economic challenges persist, bold actions to reduce government spending could inspire public confidence. Moreover, with the Ministry of Finance recommending similar measures, the rationale for these changes is both practical and strategic.

Of course, restructuring the cabinet is not without its challenges. Political considerations and resistance from vested interests may complicate such efforts. However, the benefits—both in terms of cost savings and streamlined governance—far outweigh the drawbacks.

The president’s spokesperson, Heena Waleed, has stated that there are currently no plans to alter the cabinet structure. Yet, as history has shown, moments of transition—such as the current vacancy in the Ministry of Agriculture—often provide the best opportunities for change.

The resignation of Rameela is a chance for the government to reassess its priorities and address inefficiencies. Merging ministries, beginning with agriculture and fisheries, would not only save costs but also enhance the delivery of essential services. By taking decisive action now, President Muizzu could set a new standard for responsible governance in the Maldives.