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Debt over education, public health spending is a challenge: Gov't

Minister of Housing, Land, and Urban Development Dr. Ali Haidar Ahmed has highlighted that the greatest challenge to achieving the Sustainable Development Goals (SDGs) is the cost of debt repayment, which surpasses spending on education and public health. He made the remarks during the United Nations (UN) Economic and Social Survey of Asia and the Pacific 2024 dialogue.

The dialogue is being held in collaboration with the Ministry of Housing, Land, and Urban Development, the UN Economic and Social Commission for Asia and the Pacific (ESCAP), and the Maldives National University (MNU). The event aims to evaluate the progress of countries in achieving the SDGs and to address the challenges they face in reaching these targets.

Speaking at the opening ceremony, Minister Haidar expressed concern about the widespread impact of economic challenges on the country. He noted that the primary sector of the Maldives, tourism, remains vulnerable due to slowed job creation and rising living costs. He also pointed out that the increasing frequency of climate change and natural disasters is directly affecting the livelihoods and infrastructure of the Maldivian citizens.

Additionally, Minister Haidar cited regional studies indicating that, so far, only 17% of the SDGs have been achieved in the Maldives. He emphasised that it is a troubling outcome for a developing nation like the Maldives. He noted that the financial situation and rising debt are the most significant obstacles to achieving the SDGs, with the financial gap for developing countries estimated at USD four trillion annually. He said that countries like the Maldives often rely on borrowing to sustain their efforts, sometimes spending more on debt servicing than on critical sectors like education and health. He also said that it could lead to increased government debt, limiting the country's ability to invest in sustainable development.

Furthermore, Minister Haidar said that the government is committed to taking decisive steps at the national level. He said that the key strategy involves developing various sectors and broadening the tax base. Although these goals will take time to achieve, he expressed hope that the Maldives would remain on track in its pursuit of the SDGs.

The housing ministry expressed optimism that the ongoing dialogue would contribute to the development of effective policies. The dialogue includes participation from relevant ministries, financial institutions, and students from MNU.