The leaders of this government have repeatedly emphasised the need to cut government spending to be able to sufficiently address the country’s financial situation. If one were to compile all their statements on the matter, it would require volumes of books.
Earlier this year, the government announced "many initiatives" to cut costs. Their claims revolved around halting certain projects and reforming wasteful expenditures. However, through the year, these statements eventually subsided.
Instead, rhetoric shifted to the budget "prepared by the previous government". While the current administration claimed to have planned measures to reduce costs, they attributed their inability to implement these measures to constraints imposed by the prior administration’s budget.
However, it was this government that assured the public it had already taken several cost-cutting measures and would continue to do so. In response to an RTI filed by Adhadhu, the government claimed savings of over MVR 2 billion through various initiatives by ministries and agencies.
However, when the government’s financial reports were finally published, it became evident that these cost reductions had not materialised. Next year’s budget further contradicts statements suggesting reductions in this year’s spending.
Consider the Ministry of Construction and Infrastructure as an example. According to the Finance Ministry, this ministry was supposed to have made the largest budget cut of MVR 914 million. Yet, the latest Weekly Fiscal Development Report, shows that the ministry has already spent MVR 5.7 billion out of its approved MVR 6.7 billion budget as of December 12th.
If the Finance Ministry’s claims are accurate, the ministry would need to cease all operations, including paying salaries and benefits, for the remainder of the year to achieve these savings. In essence, the ministry would have to halt all work completely.
This ministry is noteworthy for another reason: it oversees infrastructure projects nationwide. Despite its significant responsibilities, the dominant narrative from the islands is one of halted projects, project equipment being removed from the islands, and incomplete work.
Even though a few projects are progressing, the expenditure in this sector has not decreased. Financial data indicates rapid project disbursements, yet ordinary citizens, except for government supporters, see no tangible results.
The government’s recurring excuse is that they inherited a budget from the previous administration, which restricted their ability to implement changes. However, this excuse will not hold next year. The 2024 budget has been designed entirely by the current government and approved by a parliament under its control.
Plans to cut costs are again part of next year’s agenda. Unlike this year, these plans cannot be attributed to a prior administration. Let us hope that by the end of next year, we will not find ourselves revisiting the same unfulfilled promises.
