Ministry of Finance has issued a circular asking all state institutions to reduce expenditure.
In the circular, the finance ministry stated the negative effects brought on to the global economy by the Novel coronavirus outbreak in China is expected to have an impact on the Maldivian economy as well. As such, the ministry said the state is likely to generate a lower income than the anticipated income indicated in State Budget 2020.
As means of taking precautions against the economic impacts the outbreak could have, the finance ministry has instructed state institutions to reduce expenditure as much as possible. In this regard, the ministry instructed institutions not to establish new posts and to seek permission from the ministry before implementing any changes to the salary structure.
The ministry has also asked state institutions to avoid non-essential travel under state expenses and to arrange a working mechanism which reduces the need to work overtime.
While the administration has begun efforts to take precautionary measures against the economic impacts of the coronavirus outbreak, several countries have also begun taking measures to prepare for an economic recession.