Gasim urges spending cuts to avoid IMF bailout

Maamigili MP Gasim Ibrahim has called for national level steps to reform the economy instead of going into the stringent programmes run by the International Monetary Fund (IMF) and World Bank. He believes that under such programmes, even the subsidies afforded the poor in the country will have to be taken away.

Gasim said this while debating the public debt bill moved by Funadhoo MP Mohammed Mamdooh on behalf of the government.

Gasim said the government should take necessary measures to reduce public expenditure without delay. If the measures are not taken, Maldives will have to go to the programming budget of the IMF and World Bank.

"If that happens there will be no need for a president or anyone else. Furthermore, the subsidy for the most emergency situations would be cut. All subsidies would be cut. I am saying this as someone who has all this information," he said.

"Therefore, I welcome the steps being taken by the President. We cannot be saved unless he takes steadfast steps without delay”.

The government should take appropriate measures after investigating the losses suffered by the companies, he said. He said the members were ready to make any sacrifice if the measures were taken.

“It is the responsibility of this parliament today to add what should be added and cut what should be cut in order to save this country,” he said.

"I say with bold determination that we are ready to take any step necessary to save this country, to take any bitter medicine,” Gasim went on.

He said the government should do what it needs to do to save the country from the situation it is in, despite what the previous government kept saying to win the presidential election. The government and the cabinet are aiming to do so, he noted.

He also reminded that every year when the debt budget is passed by the parliament, it has the power to pass the budget in whatever way it wants.

He strongly criticised the unconditional and unprecedented admission of employees to government-owned companies in hordes on the eve of the elections. He also criticized the large amount of short term loans taken.