Finance Minister Moosa Zameer says the government spends only 1 percent of its budget on the salaries of political appointees and that the salaries would be slashed as part of cost-cutting measures.
Speaking while presenting the government's supplement budget, the Minister noted the government has already undertaken several cost-cutting measures.
He said this included changing the management of some state-owned companies and liquidating some of them to make them profitable.
The Minister also said that the government is working to minimize subsidy costs and also changing to a sustainable subsidy system linked to foreign market prices to maintain the price of fish sold by fishermen to MIFCO.
Last night, President Dr. Mohamed Muizzu announced special measures in line with the economic reform agenda.
As an initial step, the President stated he would not be taking 50 percent of his salary as President. He also announced a salary reduction of 10 percent for all politically appointed individuals for the next two years and a salary reduction of 10 percent for all staff of state-owned enterprises, excluding banks.
The Minister highlighted that the government spends 4 percent of its salary budget on political appointees.
However, he said the reduction in salaries was made to fully participate in the efforts to restore fiscal sustainability and take all possible steps, albeit small.
