State expenditure for disaster management will spike: Finance Minister

The Ministry of Finance has revealed that state expenditure will spike for expenses that come under the health sector as well as disaster management.

This was revealed by Finance Minister Ibrahim Ameer who joined the press briefing by the National Emergency Operations Center (NEOC) on Friday afternoon to give the public the latest updates regarding the impacts of the Covid-19 pandemic, to the Maldives economy.

The country’s economy is “currently in a ventilator” stressed the minister, who added that MVR 1.6 billion is expected to be spent in these efforts.

As such, he predicted the state expenditure to rise as there will be increased changes to the expenses under the health sector as well as for disaster management.

Some of the expenses currently being handled by the government include those that come under the health measures being implemented such as establishing health facilities, making arrangements for Covid-19 testing, seeking protective equipment and well as providing funds for those in need.

These expenses further spiraled following the discovery of the community transmission in Maldives capital, Malé City, said Ameer.

The government plans to take measures in order to limit these expenses, which includes reducing expenses for the transport system by 33% and completely halting the purchase of vehicles for now.

Further, expenses for electricity and fuel subsidies are to be slashed by 40%, 30% for training expenses, 59% for construction cost, as well as halting the tender process for public sector investment programme (PSIPs) which have not commenced yet.

The minister also revealed that the free aid to be provided for councils under the government’s council empowerment policy is also to be limited. The government had earlier approved a block grant of MVR 1.6 billion for local councils under the state budget.