The merger of Regional Airports Company Limited with Maldives Airports Company Limited (MACL) is saving approximately USD 648,500 from the State budget each month, Minister of Finance and Public Enterprises Hassan Zareer has said.
Speaking in Parliament while responding to questions from Parliamentarians, Minister Zareer outlined measures the Government has taken to strengthen the operations of state-owned companies. He also provided information on companies newly established by the Government.
Minister Zareer said the Government is working to reduce the number of state-owned companies and consolidate loss-making companies, noting that one company has already been dissolved. Maldives Sports Corporation was dissolved after it failed to achieve the purpose for which it was established, and a decision has also been made to dissolve Maldives Integrated Tourism Development Corporation (MITDC), with a liquidator appointed to oversee the process.
As part of these efforts, Regional Airports Company Limited has been merged with MACL, resulting in monthly savings of approximately USD 648,500. The Minister said this was the amount previously spent from the State budget each month on the operations of Regional Airports Company Limited and the salaries of its employees.
Minister Zareer said that as a result of the decision, the USD 648,500 previously allocated each month from the State budget for employee expenses and the operation of Regional Airports Company Limited is now being saved. He added that work is under way, with the support of MACL, to enable regional airports to operate using the revenue they generate.
Providing information on five companies newly established by the Government, Minister Zareer said they currently employ 889 people. Of these, 733 are employees who previously worked in the pharmaceutical division of State Trading Organisation (STO) and were transferred to the State Pharmaceuticals and Medical Supply Corporation.
Referring to the State budget, Minister Zareer said one reason recurrent expenditure has increased is the harmonisation of State salaries. He also said expenditure on fuel has risen threefold due to the war in the Middle East.
The Minister said the Government is undertaking a number of measures to increase State revenue and reduce expenditure as part of efforts to boost revenue.