Government is not making a serious effort to reduce spending, and this administration has held more events than any other: Shamheed
Member of Parliament for Hulhumalé South, Dr. Ahmed Shamheed, has accused the government of escalating wasteful and unnecessary expenditures. With the national debt approaching 130 percent of GDP, a recent Asian Development Bank (ADB) report highlighted mounting economic challenges driven by rising fuel prices and fluctuations in the tourism sector, emphasizing the urgent need for fiscal reforms. Dr. Shamheed noted that despite these warnings, the government continues to host numerous high-cost ceremonies instead of reducing administrative expenses, stressing that serious measures must be taken to stabilize the country's financial situation.
Dr. Ahmed Shamheed, Member of Parliament for the South Hulhumalé constituency. | Raajje MV
Dr. Ahmed Shamheed, the Member of Parliament for the South Hulhumalé constituency, has criticized the current administration, stating that it is not making a serious effort to reduce expenditure. He further remarked that this government holds more events than any previous administration.
Speaking on RaajjeTV’s "TV Talk" program, Shamheed stated that while the government has failed to implement any meaningful austerity measures, it continues to cite the situation in the Middle East as an excuse for every challenge. He emphasized that a government's responsibility is to ensure national progress despite such global crises, noting that the previous MDP administration took decisive action to manage the economy even during the height of the Russia-Ukraine war.
Shamheed stated that the current administration is wasting funds on every endeavor and has failed to take any meaningful action to reduce expenditures.
I have never seen this government actually cutting costs. The main reason I say this is because I see this administration as one that hosts the most events. I have never seen a government hold so many functions. Each of these events costs a significant amount of money, and these unnecessary events are being held constantly. There are three or four ceremonies being held for the exact same thing. For example, the Eydhafushi housing project has been inaugurated three or four times already. Therefore, no serious efforts have been made yet to reduce expenditure.Dr. Ahmed Shamheed, Member of Parliament for the Hulhumalé South constituency.
Shamheed stated that one of the government's greatest failings is its refusal to compromise and its denial of these realities. He further noted that the administration remains indifferent to the concerns raised by the opposition, the public, and all other stakeholders.
The Asian Development Bank (ADB), in its "Asian Development Outlook (ADO) April 2026" report, has projected a significant slowdown in the Maldives' economic growth for 2026. This downturn is attributed to the ongoing instability in the Middle East, which is expected to adversely impact the tourism sector, global oil prices, and the nation's fiscal and foreign currency reserves.
ADB Senior Economist Jules Hugot stated that while the Maldives successfully met its sukuk payment obligations on April 2, significant challenges remain. He noted that the strain on the state budget is intensifying due to declining tourism revenue and rising fuel prices, emphasizing that the implementation of fiscal reforms is now critical.
Despite a reduction in the 2025 budget deficit driven by significant cuts to capital expenditure, recurrent spending continues to rise. Even after meeting sukuk obligations, the national debt remains high, approaching 130 percent of GDP. Rising fuel prices have inflated subsidy costs, while a slowdown in tourism has led to a decline in tax revenue. These factors have placed immense pressure on public finances, further compounded by narrowing opportunities for external financing.
