Public dollar shortages are caused by government mismanagement and wasteful spending: MP Ziyad

Despite an increase in state revenue and foreign currency inflows, the public continues to face difficulties in accessing US dollars due to government mismanagement and wasteful spending, stated Hussain Ziyad, the Member of Parliament for the Vaikaradhoo constituency.

Speaking at Sunday's parliamentary sitting, MP Ziyad noted that data from the airport expansion project, MIRA statistics, and resort performance all indicate a clear increase in national revenue. He questioned why the public remains starved of foreign currency and fails to see the benefits of this growth, even as the state collects $40 out of every $100 charged per guest by resorts.

Highlighting the issue of wasteful spending and the burden of providing dollars to embassies and numerous State-Owned Enterprises (SOEs), MP Ziyad noted that parliamentary debates have revealed instances of individuals receiving salaries in US dollars from MACL without even reporting to the office. Furthermore, MP Ziyad alleged that US dollars earned by MACL are being diverted to fund the Fushidhiggaru reclamation project.

Furthermore, MP Ziyad stated that even if amendments are made to dollar and foreign exchange laws, the public will not see meaningful relief through tax hikes unless underlying management issues are addressed.

Revenue is increasing. However, why is there still a shortage of dollars? This is the fundamental question being asked by the public. Honorable Speaker, there is no issue with the inflow of revenue. It continues to arrive, and our annual income is consistently rising. Yet, I believe the failure to deliver these benefits to the citizens is a direct result of government mismanagement. Without addressing these underlying issues, no matter how many new taxes we introduce, I fail to see how this legislation or the government’s current policies will provide the relief we are seeking. The evidence of this failure is that even after three years, we continue to regress day by day.

Hussain Ziyad

MP Ziyad raised concerns regarding the government's revised dollar exchange policies, questioning the potential negative impact on the tourism sector versus the actual benefits to the state. He further noted that the changes implemented thus far have failed to bring any tangible progress for the citizens or the nation.