Govt plans HR audit to reduce public sector expenditure in 2027
One of the measures being considered is restricting recruitment across government institutions.
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The government plans to conduct a human resources audit across state institutions to assess staffing requirements and identify measures to reduce public expenditure in 2027, Minister of Finance and Public Enterprises Hassan Zareer said on Monday.
Speaking at a meeting of Parliament's Budget Review Committee, attended by senior officials from the Ministry of Finance and Public Enterprises, Zareer outlined measures the government intends to introduce to contain expenditure next year.
He said salaries and subsidies account for a substantial share of government spending.
According to the minister, the proposed 2027 budget allocates MVR 17.1 billion for salaries and employee benefits, while approximately MVR 13 billion is expected to be spent on subsidies.
One of the measures being considered is restricting recruitment across government institutions.
Zareer said President Dr Mohamed Muizzu had decided that no new government posts would be created next year, while recruitment to replace departing employees would be limited to positions considered essential.
The minister also said the Finance Ministry and the Pay Commission were planning a human resources audit to determine whether government institutions have the number of employees required to carry out their responsibilities.
The audit would assess staffing levels across institutions and identify areas where employees are needed.
Where institutions have more employees than required, the government would consider transferring staff to other departments or institutions facing shortages, Zareer said.
The proposed measures are intended to improve the allocation of employees across the public sector while limiting expenditure on recruitment and salaries.
However, figures in the proposed 2027 budget show that expenditure on salaries, wages and employee allowances is expected to increase compared with the previous two years.
Expenditure on salaries and wages is projected to rise from MVR 6.6 billion in 2025 to MVR 7.5 billion in 2026 and MVR 7.9 billion in 2027.
Spending on employee allowances is also expected to increase, from MVR 5.8 billion in 2025 to MVR 6.3 billion in 2026 and MVR 6.5 billion in 2027.
Despite the planned recruitment restrictions and staffing review, the budget therefore projects continued growth in both expenditure categories.
Zareer also identified reducing dependence on fuel and strengthening controls over medical consumables as measures to contain government spending.
He said the government intends to address waste in the healthcare sector, including expenditure associated with medical supplies and consumables.
The measures form part of the government's plans to manage recurrent expenditure under the proposed 2027 state budget, which is currently being reviewed by Parliament.
