MP for Hoarafushi Constituency, Mohamed Ismail on Thursday praised the Government’s decision to revise its food subsidy policy as a step taken in the right direction to further strengthen the country’s economy.
Speaking on TVM’s Raajje Miadhu programme, MP Ismail noted the importance of targeted subsidies to reduce government spending and bridge the country’s fiscal deficit. He also said “the staple food subsidy, which is intended for disadvantaged families, should not go to those who do not deserve them.”
The government revised the food subsidy policy citing that people who are not eligible for food subsidies were receiving the benefits due to flaws in the system. Before the implementation of the policy, the government had been contributing 65 to 70 percent of funds required to import staple foods through State Trading Organisation (STO).
Under the revised policy, each eligible individual will receive MVR40 rufiyaa per month as food subsidy. With the implementation of the policy on Saturday, the price of rice rose from MVR3.98 to MVR7.96 a kilo. The prices of flour and sugar also rose from MVR2.96 to MVR5.96 per kilo, and from MVR4 to MVR8 a kilo respectively.
The Government spends around MVR310 million on food subsidies every year.