The government has announced the decision to revert some of the cost-cutting measures implemented following the Covid-19 pandemic.

While the government had reduced the wages of political appointees as well as civil servants earning more than MVR 20,000 back in March, Ministry of Finance via a circular announced some changes to this. President and vice president’s salaries were deducted through the People’s Majlis as well.

As such, it reads that two of the cost-cutting measures have since been reverted.

Despite this, recruitment by state institutions has to still be approved by the finance ministry, as well as providing new allowances and replacement of employees who resign.

It also noted that international trips of state officials are still halted, and can only be after approval from the ministry.

Further, institutions have been told not to start any new development projects.

The government announced its decision to decrease state expenditure by MVR one billion under efforts to combat the spread of Covid-19 in the Maldives, in March.

With the discovery of Covid-19 cases in the country, President Ibrahim Mohamed Solih had stated that an economic downturn is expected. He stated that a MVR 6.9 billion reduction will be seen from state revenue whereas GDP will fall in between 0.5 to minus 5.6%.

The total forecast for losses in state revenue due to the economic downturn is between USD 135.9 million and USD 446.9 million.