President Dr Mohamed Muizzu has stated that assigning development projects to state-owned enterprises (SOEs) will significantly reduce pressure on the national budget by allowing projects to be executed at or near actual cost.

Speaking at a press conference at the President's Office on Saturday, President Dr Muizzu said the move would save millions by eliminating profit margins typically included in large-scale development budgets.

He explained that the Government has opted to route many key projects through SOEs, allowing for more efficient spending.

According to him, running projects at cost, approximately MVR 15 to 20 million could be saved, and he mentioned that these projects would be overseen directly by the Ministry of Finance.

Responding to a journalist's question on financial reform, President Dr Muizzu said while cost-cutting measures within the Aasandha health insurance scheme will proceed as planned, the Government is no longer considering reforms that would reduce financial assistance to citizens.

The President added that project funds will be disbursed to SOEs on a weekly basis as part of a special operational framework designed to accelerate implementation of development initiatives planned for this year and next.

He also highlighted the Government's strategy to purchase materials in bulk, particularly for sports and infrastructure projects, as another way to achieve considerable savings.

President Dr Muizzu assured that projected savings outlined in the national budget through financial reforms will be met primarily by reducing the cost of project implementation.