Ministry of Finance has decided to take strict measures to reduce the cost of running the state due to the increase in oil prices and commodity prices in the world market due to the Russian-Ukrainian War.
Minister of Finance Ibrahim Ameer signed and issued a circular to all government offices asking them to comply with the measures taken by the government to reduce expenditure. The circular, sent to government offices, said government expenditures are also increasing due to the increase in oil prices and commodity prices in the world market. The circular stated the measures taken to reduce public expenditure with the economic challenges include suspending promotions of employees and ordering them to do only essential work during official hours.
The circular also ordered for scholarships given to employees at state expense to be stopped at this time and for seeking any services except essential services. The circular also ordered the suspension of any renovation work on the offices. It also include not creating any positions at the expense of the state budget, not changing the pay structure without the permission of the National Pay Commission, not giving promotions to staff and increments in salary, and suspension of trips abroad except for trips provided by foreign parties and obtaining finance approval for expenditure in excess of MVR 5,000.
The circular said all government offices will have to comply with the circular from June 20. The local councils will also have to take these measures into account when spending block grants and own revenue, according to the circular.
President Ibrahim Mohamed Solih recently stated that measures will be taken to adjust to the changes in world market due to the ongoing conflict between Russia and Ukraine.
