The Muizzu government has reduced more than MVR 2 billion from this year’s MVR 49.8 billion budget as part of its efforts to cut expenditure, following difficulties in raising funds to finance the budget. The Finance Ministry announced that MVR 14.6 billion was initially intended to be sourced externally, but a review of potential savings led to the decision to make significant deductions.
The largest budget cut was from the Ministry of Construction and Infrastructure, with a reduction of MVR 912 million. The Ministry of Health faced a reduction of MVR 314 million, while the Ministry of Education saw its budget cut by MVR 199 million. Similarly, the Ministry of Housing had MVR 162 million deducted, and the Ministry of Sports experienced a reduction of MVR 159 million.
Further cuts were applied to the special budget of the Finance Ministry, as well as various ministries, agencies, independent institutions, and hospitals.
In addition to the budget reductions, the government is also revising the national health insurance scheme, Asandha, and subsidy systems in a bid to control expenditure. The Finance Ministry confirmed that these changes will be implemented from next month.
