Former Finance Minister Ibrahim Ameer has criticized the government's proposed MVR 56.6 billion budget, stating that it reduces essential spending by MVR 3 billion while increasing allocations for non-essential or "wasteful" items by MVR 3.8 billion.
Speaking about the 2025 budget, Ameer expressed concern that the budgetary decisions fail to address the country’s pressing economic situation. Despite intentions to cut spending, he argued, the budget reflects an increase in expenditures that prioritize non-essential areas over public needs.
Ameer pointed to specific reductions in allocations for essential services, noting cuts in Aasandha, subsidies, basic pensions for the elderly, and grants for councils. "For instance, the budget proposes cutting MVR 3 billion from essential services like Aasandha and pensions while raising spending for what can only be described as wasteful government expenses by MVR 3.8 billion," Ameer said.
He described the increased allocations for ministries and agencies as excessive, adding, "About MVR 3.8 billion has been earmarked for expanded government spending, which diverts funds from basic services for the public."
Ameer also highlighted a 12% increase in recurrent expenditure in the 2025 budget, expressing concern that such growth in spending could lead to further strain on the country’s economy.
Speaking about the 2025 budget, Ameer expressed concern that the budgetary decisions fail to address the country’s pressing economic situation. Despite intentions to cut spending, he argued, the budget reflects an increase in expenditures that prioritize non-essential areas over public needs.
Ameer pointed to specific reductions in allocations for essential services, noting cuts in Aasandha, subsidies, basic pensions for the elderly, and grants for councils. "For instance, the budget proposes cutting MVR 3 billion from essential services like Aasandha and pensions while raising spending for what can only be described as wasteful government expenses by MVR 3.8 billion," Ameer said.
He described the increased allocations for ministries and agencies as excessive, adding, "About MVR 3.8 billion has been earmarked for expanded government spending, which diverts funds from basic services for the public."
Ameer also highlighted a 12% increase in recurrent expenditure in the 2025 budget, expressing concern that such growth in spending could lead to further strain on the country’s economy.
