Indiscriminate development projects drained budgets, minister slams ex-govt

Finance Minister Dr Mohammed Shafeeg has said that the previous government had strained the budget immensely by carrying out works without discriminating between small or big islands.

Speaking at the launch of a meeting organised by the Ministry of Local Government and Public Works at STELCO on Wednesday, the minister said the previous government had handed over the infrastructure works in the islands to state-owned companies at a very high cost. 

Shafeeg said that Hulhumale is the largest asset in Maldives today, and that the progress of the development in Phase-I and II of Hulhumale depict the changes desired by the people, and that the people are witnessing it.

"...we are seeing people living in a civilised society. We are seeing ways that ease the congestion of the city and people living a prosperous life," he said.

The minister said the government's biggest objective is to ensure housing for the people within the next five years.

Public works are important for that and in the past, most of the public work had to be done by other government companies, which increased the cost.

“When the works were planned, not discriminating between small islands or big towns, it was too much for our budget,” he said.

He said the works were entrusted to 100% government-owned companies but they wanted to improve the company's revenue and profitability, which was another burden on the state.

"But if a public corporation is able to complete the government's work as quickly as possible, it will be a relief for the state if it is able to do the work in a cost-effective manner," he said.

The minister said every penny saved in that way could be utilised elsewhere.