Minister of Finance Ibrahim Ameer has affirmed the Maldives will not fall to a situation where state employees cannot be paid, despite the economic hardships caused by the COVID-19 pandemic.
In response to a question at the Parliament of the Maldives on whether there is a possibility of not being able to pay employees, Finance Minister Ameer said the cash flow of the country is still in a good state, thanks to the large amounts of foreign grants and aids received last year. Noting cash flow is reviewed on a daily basis amid the COVID-19 pandemic, the minister said there are currently no difficulties in managing the cash flow of the state. Therefore, he said state employees will be paid their salaries, despite the economic crisis caused by COVID-19.
Speaking further, the finance minister highlighted the state reserve is decreasing as the main source of state income has been blocked due to COVID-19. However, the minister affirmed this will not affect social services provided by the government, such as education and healthcare. He also noted the projects awarded by the government will continue despite the crisis, adding bills are being processed every day.
Further, the finance minister stated import will not be affected despite the decreasing reserve. The minister noted broadening the economy is the main policy which will be implemented by the government in the economic recovery efforts, adding this would reap benefits in the long term despite challenges in the short term.
Although economic projections at the start of 2020 suggested the Gross Domestic Product (GDP) of the Maldives would grow this year, current projections indicate GDP growth would decrease by 11%. The finance ministry states the Maldivian economy is expected to recover to pre-COVID-19 levels by 2022.