The Governor of Maldives Monetary Authority (MMA), Ahmed Munawwar, has emphasised that the distribution of subsidies must be implemented with meticulous planning and strategic oversight.

The Governor's remarks came during a session of the Budget Review Committee, where he was joined by key financial figures including the Minister of Finance, Moosa Zameer, and the Auditor General, Hussain Niyazy.

"The delay stems from the absence of a robust framework," Governor Munawwar said, noting implementation attempts over the past two years. "Our primary recommendation is the establishment of a comprehensive database."

Finance Ministry officials project an MVR 3 billion increase in state spending if proposed austerity measures are not implemented next fiscal year.

Without targeted distribution, subsidy costs could surge by MVR 2.1 billion next year. Parliament has currently allocated MVR 1.9 billion for six subsidy programmes, but total costs could reach MVR 4 billion without reforms.

Starting April, the Government plans to restructure four universal subsidies based on household income: fuel, staple foods, electricity and sewerage. Officials have assigned MVR 900 million for this initiative.

The reforms also target Aasandha, the national healthcare scheme, which faces a projected MVR 700 million increase in expenses without changes. The new framework includes collecting contributions from affluent citizens and standardising service packages for private hospitals. Additionally, individuals with private insurance will be required to utilise their private coverage first, with Aasandha covering only the remaining expenses.

These reforms are part of the Government's MVR 56 billion budget submitted to Parliament for the upcoming year, with Finance Minister Zameer emphasising the critical nature of implementing these cost-cutting measures for fiscal sustainability.