Two Years’ Pandemic Estimated to Cost USD 2.3 Billion in Loss to the Government

Speaking at the training program for councilors on educating them on the Government finance regulations, Minister of Finance, Ahmed Ameer states that an estimated loss of MVR 36 billion will be incurred by the Government of the Maldives between 2020 to 2022. This is equivalent to USD 2.3 billion. 
 
Minister revealed that based on the Medium-Term Fiscal Strategies of 2020, and given the global crisis due to the ongoing pandemic, the smarter thing to do right now is to spend less. By managing government spending within the allocated budgets, the government might be able to compensate for the dramatically reduced means of income. Simultaneously, he said that the Ministry’s aim will be to invest in more income generating and cost reducing options as a back-up to recovering faster from the growing debt amid the pandemic.  
 
He urged the councilors to adapt to a block management strategy and to retain the costs within the income generated by the individual councils in the meantime. In light of the many easements brought to the decentralization laws, councils are now empowered to a range of opportunities in generating more income for themselves as well. Minister advised the councilors to utilize these opportunities.