Minister of Finance and Planning Moosa Zameer has said the Government’s fiscal and administrative reforms are delivering tangible results, significantly strengthening the country’s financial management systems.

He made the remarks at a press briefing held today at the President’s Office following a meeting of the Special Cabinet Committee established by President Dr Mohamed Muizzu to formulate and implement policies in response to global developments.

Responding to a question on the Government’s fiscal reform agenda, Minister Zameer said that when President Dr Muizzu assumed office, one of the most pressing challenges facing the State was the ability to meet debt obligations.

He said the Administration introduced major structural reforms to the country’s fiscal and administrative systems to address this issue and maintain public debt at a sustainable level. As a result, a substantial portion of the State’s debt has been repaid.

Minister Zameer noted that towards the end of 2023 there were widespread concerns over whether the Government would be able to honour its financial commitments. He said that through expenditure rationalisation, the implementation of a comprehensive economic agenda and disciplined reforms, the Government has continued to service its debt while ensuring the uninterrupted delivery of essential public services.

He said this demonstrated that sound economic management can stabilise state finances without compromising services relied upon by the public.

Addressing concerns related to the conflict in the Middle East, Minister Zameer said one of the most frequently raised questions has been whether the Maldives would continue to receive fuel supplies without interruption. He assured the public that the country has not experienced any disruption in fuel availability to date.

He explained that global oil prices are beyond the Government’s control. However, the Administration is using subsidies to cushion the impact of price fluctuations and reduce the burden on the public. He added that this approach would continue.

Zameer also said that if the Government needs to borrow in the future, any new debt would be undertaken only after comprehensive repayment plans and financing arrangements are in place to ensure the obligations can be met sustainably.