Ministry of Finance has issued a circular requesting all state institutions to cut expenses owing to the financial constraints of the COVID-19 pandemic.
In a circular signed by Minister of Finance Ibrahim Ameer, the ministry advised all state institutions to minimise expenses on staff, travel expenses, maintenance expenses and capital expenditure. The circular asked the state institutions to refrain from hiring any staff except those approved by finance ministry by March 17, 2020. Further, the circular advised to avoid allocating any new allowances and seek ministry's approval before hiring or replacing staff.
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. As such, 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. The finance ministry advised to allocate overtime allowance within the budgeted amount and to close the offices latest by 1430 hours.
The state aims to reduce the expenses up to USD 64 million in this year.