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May 1, 2024: MDP Chairman Fayyaz Ismail speaks at a press conference at the party office

MDP calls for political employees cut to 700

Fayyaz's comments were sparked by the government's recent decision to implement a series of austerity measures aimed at reducing expenditure.

24 October 2024

Former Economic Minister and MDP Chairman, Fayyaz Ismail, on Wednesday criticised the government's decision to cut salaries of politicians and corporate employees, calling for a significant reduction in the number of political positions as a necessary first step in economic reform.

In a public statement, Fayyaz emphasised that it is "shameful" to ask the public to bear the burden and increase taxes while the government continues to maintain a bloated number of political employees.

He argued that, before discussing tax hikes and salary reductions, the government should fulfil its promise to the people by reducing the number of political appointments to 700, a figure he described as more realistic and fiscally responsible.

The criticism comes in the wake of reports that nearly 3,000 political jobs have been created within the past 11 months—a number that Fayyaz believes should be drastically cut to reflect the government's commitment to economic efficiency and fairness.

Fayyaz's comments were sparked by the government's decision on Wednesday to implement a series of austerity measures aimed at reducing expenditure.

Among these measures is a 10% salary cut for political office holders and employees of state-owned enterprises, excluding banks. The move comes as part of President Mohamed Muizzu's broader economic reform agenda, aimed at mitigating financial strain and promoting fiscal discipline.

Other measures announced by President Muizzu include:

  • A 10% reduction in salaries of political positions. 

  • A 10% reduction in salaries for government-owned company employees, excluding banks.

  • A salary cap of MVR 90,000 for company senior executives.

  • A request for a 10% salary cut from judicial officials and members of Parliament.

  • President Muizzu to reduce his own salary by 50%.

Fayyaz criticised the government's approach, labelling the simultaneous tax hikes on the general public and businesses and the salary cuts as "two-headedness." According to him, these measures represent an inconsistency in government policy, suggesting that the government is not adequately prioritising internal cost-cutting before passing on the financial burden to the people.

"Before imposing any kind of financial burden on the public, the government must first demonstrate its own willingness to cut unnecessary expenditures," Fayyaz stated.

While the government insists that the salary reductions and tax hikes are necessary to stabilise the economy, opposition figures like Fayyaz argue that the focus should be on internal restructuring rather than measures that impact the general public. His criticism echoes a common concern among citizens, who worry that the burden of economic reform is being unfairly placed on their shoulders.

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