Government to take major steps to save MVR2.5 billion

The government has decided to take major steps to save MVR2.5 billion from the State budget. In an interview with Haveeru in relation to the special steps being taken to minimize State expenditure and increase revenue, Finance Minister Abdulla Jihad revealed that apart from civil servants the government had decided to reduce 10 percent from the salaries of all other State employees.

To that end, the decision entails deducting the salaries of employees in public owned corporations, Minister added.

“The State would be able salvage quite a significant amount just by deducting 10 percent from the salaries of political appointees and Parliament members. In addition, the salaries of State employees are being deducted as the State expenditure had increased quite considerably. But this would not be a permanent move,” Jihad detailed.

Minister further said that the decision to deduct 10 percent from the salaries of employees in State owned corporations was a bid to increase dividends payable to the State.

He added that the measures being taken to reduce State expenditure include cutting down State visits, unnecessary repairs and capital expenses. Also holding off acquiring additional employees and nonessential projects, Jihad said.

Jihad also stressed that to streamline the remuneration of all government employees; their salaries needed reviewing and revealed that a Pay Board would be established for that purpose until a Bill related to the pay commission can be passed by the Parliament.

Minister further claimed that the proposed measures would save approximately MVR2.5 billion for the State.

“These measures will be taken without hindering or undermining any services currently being provided to the people. Our aim is to minimize expenditure but continue the provision of services to the public,” he added.

Jihad alleged that the pending MVR2 billion in payments for the expenses of the former administration had been a severe strain this year, which had been the reason why the State budget was in deficit by the same amount.
Tweet Bookmark Print Badge the Comments! Give badges to the best comments you see! You will get four badges a day 0 Comments To have full access to the interactive features available in Haveeru Online please register or sign in. or Post a Comment Loading comments... Please wait