Minister of Finance and Planning, Moosa Zameer, has stated that work is underway to formulate a special cost-cutting plan to be presented to President Dr Mohamed Muizzu. He revealed that key sectors are currently being identified for the implementation of cost-reduction measures.
Speaking at a press conference held at the President’s Office, Minister Zameer noted that steps to reduce expenditure have already been undertaken within the existing budget. He added that, compared to the past five years, the budget deficit has been reduced. However, while the current deficit stands at USD 389.10 million, he cautioned that ongoing conflict in the Middle East could push this figure up to USD 518.8 million.
Under the proposed special plan, the government is exploring measures to contain recurrent expenditure. Areas such as recruitment and other areas are also under review as part of the cost-cutting efforts.
“Our team is exploring measures to contain recurrent costs and generate savings. Within the budget, hiring and several other areas are being assessed. I have prepared a list of proposed changes to present to the President. With his guidance, the implementation of these changes will result in savings,” the Minister said.
He emphasised that implementing such changes requires careful consideration, noting that potential loss of revenue and financing strategies to offset reduced expenditure must both be taken into account. Minister Zameer stated that the plan will be submitted to the President within a week, after which the government will announce the measures to be implemented.
As part of the cost-cutting initiative, overseas government travel has been suspended. Government institutions and agencies have been advised to participate in meetings virtually wherever possible. An exception has been made for the Minister of Foreign Affairs, where travel is necessary to fulfil official duties.
Despite these measures, the Minister reaffirmed that health and housing initiatives will remain a priority. He added that all measures will be implemented in a manner that ensures the continued provision of essential public services.