The Muizzu administration is reluctant to implement cost-cutting measures despite fears of a prolonged war in the Middle East.
The public has expressed concern over the lack of cost-cutting plans more than 23 days after the US-Israel attacks began against Iran.
The special cabinet committee formed by President Mohamed Muizzu told a press conference on Sunday (March 22) that they believe the war will not end soon.
"This will not be done in one or two months. We now predict that this will take at least six months," said Finance Minister Moosa Zameer, who was the first Foreign Minister in the Muizzu administration.
"Then we will look at the steps we need to take and continue to cut spending and monitor external reserves on the advice of the President and the Cabinet."
Zameer said some countries were implementing cost-cutting measures for political purposes, while others may do so on instruction from the International Monetary Fund (IMF).
"We have made estimates. We will make the necessary changes accordingly," he added, without providing details.
The Maldives will lose between USD 85 million and USD 90 million in the first month of the war, Zameer announced.
This is more than MVR 1 billion lost every month from the estimated MVR 33.5 billion in revenue this year.
Countries with stronger economies are also taking measures to cut spending. These include China, Japan, the Philippines, South Korea, Malaysia, Indonesia and India.
