After taking office with promises to reduce expenses and run the state without borrowing, 2024 has become the most indebted year in the history of the island nation, warns former Minister of Finance Ibrahim Ameer.

Ameer noted that as of 26 December 2024, the budget deficit reached MVR 14.8 billion, and it is estimated that this figure would have risen to MVR 15 billion by the end of the year.

The former minister stressed that this is an even larger deficit than observed in 2020, when the country faced an unprecedented economic and health crisis, with revenue dropping by 65 percent.

The former minister, who managed the state budget during the Covid-19 crisis, said that they had been reducing the deficit amount each year after overcoming the challenges posed by the global pandemic.

He stressed that the progress has now been reversed.

Ameer highlighted that while government expenses have soared and debt has increased, what's most concerning is that all projects from the north to the south of the Maldives have been halted. Companies are also going bankrupt due to unpaid bills.

He noted that small and medium enterprises are at a standstill, fishing has stopped, and Aasandha and National Social Protection Agency (NSPA) benefits are not being received.

In addition to this, the former minister said that while prices of goods are skyrocketing, the expenditure on debt repayment remains almost the same as the previous year.

While projects are halted and the condition of the general public is deteriorating, Ameer pointed out that the state revenue in both MVR and USD has increased compared to previous years. He stated that as of 26 December 2024, the state revenue increased by MVR 742 million compared to the previous year, and dollar revenue increased by USD 100 million as of November 2024.

The former minister stressed that with all these circumstances, while the state budget has a deficit of MVR 15 billion, there's nothing to show for what has been done in the past year.