Government to roll out austerity measures with minimal public impact

The Government will introduce austerity measures designed to minimise inconvenience to the public, as authorities step up preparedness in response to ongoing tensions in the Middle East and Gulf.

Speaking at a press briefing at the President’s Office on Sunday, Minister of Foreign Affairs Dr Abdulla Khaleel, who chairs the Special Cabinet Committee established to monitor the situation, said the Government’s approach prioritises stability while safeguarding public welfare.

Providing updates on the Administration’s response, Finance Minister Moosa Zameer said President Dr Mohamed Muizzu has directed that essential public services remain uninterrupted and that the basic needs of citizens continue to be met, even if the situation persists.

He noted that key institutions—including the Maldives Monetary Authority (MMA), Maldives Inland Revenue Authority (MIRA), and the Ministry of Finance—are working closely to implement the measures while ensuring the continued availability of fuel, staple foods and essential medicines.

Zameer added that provisions are also being maintained for Government-sponsored students abroad, including course fees and stipends, alongside steps to manage State cash flow prudently.

Addressing public concerns, the Minister said austerity measures are being carefully tailored to the Maldives’ specific context. He explained that details of the measures have not been publicly disclosed to avoid potential negative repercussions, emphasising that the Government’s focus is on reducing expenditure while maintaining economic stability.

The Special Cabinet Committee, formed by President Muizzu on February 28, comprises nine Cabinet Ministers tasked with coordinating national response efforts. The Committee is scheduled to provide regular updates every Sunday at 4:00 pm.

Senior ministers, including those responsible for defence, transport, tourism, higher education and Islamic affairs, were also present at the briefing, reflecting a coordinated, whole-of-government approach to managing potential impacts on the Maldives.