Reform policies underway, improving financial conditions

Minister of Finance Dr. Mohamed Shafeeq has highlighted the current administration's proactive efforts in significantly improving the financial conditions of the state. These remarks were made during discussions on the “Scaling Back and Re-Building Buffers” report formulated by the World Bank about the Maldives.

The World Bank report indicates that although the Maldives has seen substantial advancements in the tourism sector, the overall pace of economic growth has slowed. The report also notes that despite a surge in tourist arrivals, economic efficiency has been stagnant, with the spending value per tourist remaining low.

During the discussions, Minister Shafeeq acknowledged that last year's economic growth forecasts were not met, attributing this to the previous administration's failure to implement strategic measures.

Furthermore, the minister strongly emphasised the current administration's goal of significantly reducing state expenses. This includes initiatives such as amending regulations related to subsidy provision and revising the Aasandha health insurance scheme. He also highlighted the implementation of reform policies aimed at improving the operations of state-owned entities.

Minister Shafeeq also provided insights into the government revenue attained this year, reiterating that it met expectations, affirming that the government will fully utilize reports compiled by the World Bank and the International Monetary Fund in preparing next year's budget.