Maldives govt. spends 90% of compensation budget

Minister of Finance Ibrahim Ameer

Maldives government has spent MVR92.6 million as compensation so far in 2023.

According to the Ministry of Finance, the government has spent 90% of its compensation budget allocated in the 2023 state budget. The government allocated a total of MVR101 million to pay compensation this year.

Meanwhile, the Maldives state has paid out MVR1.6 billion in compensation over the last four years, to various parties for breach of contract. The government has exceeded its compensation budget each year for the past four-year period.

To adjust the losses, the government has formed a settlement committee to seek compensation for losses suffered during previous administrations. The state previously said that the compensation owed to private companies for illegal termination of contracts by the previous governments amounts to MVR6.8 billion.

Moreover, the settlement committee received 37 cases before it was dissolved in September 2021. However, a new rule introduced in late-2022 now allows for the possibility of filing for damages once again.