Minister of Finance Ibrahim Ameer has revealed USD 582 million was saved from the 2020 State Budget with the help of policies enacted to reduce state expenditure amid the COVID-19 pandemic.
Speaking at a press conference held at the Health Emergency Operation Centre (HEOC), Finance Minister Ameer said the government was forced to take drastic steps to reduce state expenditure last year, due to the financial and economic implications of the COVID-19 pandemic. As such, the minister highlighted the reduction of salaries for senior state officials, postponement of several PSIP projects and the reduction of expenses for state travels and office renovation. He noted the expenditure cuts helped to save USD 582 million last year.
Maldives incurred major losses in income last year due to the shutdown of borders and suspension of tourism activities for over three months. The finance ministry had earlier revealed that the budget deficit was at USD 809 million by the end of 2020, representing 18.9% of GDP.