Govt fails to improve financial health, Ameer says
Ameer also criticised the government’s inability to implement cost-cutting measures outlined in the national budget.
Former Finance Minister Ibrahim Ameer on Tuesday accused the government of failing to take concrete steps to improve the financial health of the state.
Despite its promises, the administration has not implemented measures to recover outstanding revenue or control expenditures, he claimed.
According to Ameer, government statistics indicate that the amount of unpaid revenue owed to the state has increased significantly. He pointed to President Mohamed Muizzu’s earlier pledge to address the nation’s debt by recovering outstanding dues but argued that no real efforts have been made to collect these funds.
Ameer highlighted that by the end of the last quarter of 2023, the total outstanding revenue—excluding penalties—stood at MVR 7.9 billion. However, by the end of 2024, this figure had risen to MVR 10.9 billion, marking an alarming 38% increase.
"For Quarter 3 and Quarter 4 of the year 2024, MVR 10.9 billion and MVR 10.8 billion are still outstanding. I believe the government has waived resort penalties for some individuals," Ameer said.
He called for clarification on whether resort rent had indeed been waived and, if so, on what grounds.
Ameer also criticised the government’s inability to implement cost-cutting measures outlined in the national budget. He noted that the budget estimated savings of MVR 7.7 billion through expenditure reduction. However, as of January 2025, there have been no signs of these measures being put into action.
"The budget was designed to achieve savings, but the reality is different. I do not believe the government will be able to save MVR 7.7 billion as planned. Instead, I anticipate another supplementary budget of MVR 7 billion will be passed before the end of this year," he said.
Despite the government’s claims of financial discipline, Ameer warned that expenditures continue to rise unchecked. He urged the administration to take urgent steps to recover outstanding dues and control spending to prevent further deterioration of the state’s financial situation.
