The revenue generated has been utilised effectively to cover the costs the nation has incurred during the past three months. Previously, the revenue attained can only be utilised to cover the costs incurred in January, as the expenses in the following months are greater than the revenue generated. Hence, this marks the first time finances have been managed efficiently for three months.
Numerous stalled projects and hefty debts led to the urgent need for beneficial changes in the nation when President Dr. Mohamed Muizzu assumed office. Therefore, the government has initiated several measures within the first few months of President Dr. Muizzu's term, aiming the recovery of the economy. The deteriorating situation of the economy and major economic obstacles was observed by various foreign institutes. However, international financial institutes have praised the efforts of the president, following the counter-actions taken aiming to boost economic growth.
Speaking at an interview given to PSM News, Minister of Finance Dr. Mohamed Shafeeq emphasised the extensive efforts made by the government to promote economic recovery. The minister revealed that the debt level of the nation was so high, contributing to 115% of the GDP of the nation, stressing the necessity of sustaining low debt levels. He additionally stated that the global shock and economic recession following the COVID-19 pandemic also contributed to the financial deterioration of the nation.
Minister Dr. Shafeeq elucidated the significance of allocating budget finance to recover the economic situation of the country sustainably. The minister disclosed that 60% of the debt was incurred within the country, while 40% debt was attained from abroad. He further noted that repayments for debts attained were necessary.
Observing the economic situation in which expenses are greater than the revenue generated, Minister Dr. Shafeeq stated that the costs incurred increase due to unnecessary expenses. As such, the minister emphasised the significance of reducing such expenditures, while strengthening and standardising the management of companies. Additionally, he highlighted the importance of launching projects, such that it does not delay the economic progress. He stressed the need to formulate plans and arrangements, while highlighting the efforts of the ministry, required to achieve continuous economic progress.
Several international financial institutes have praised the current administration's policies and efforts to achieve the long-term prospects of the economy. Global financial administrations have also observed that the policies adopted by the government were crucial for the nation's economic development in the long run.