Govt. decides to halt PSIP projects, amid income shortcomings

The government of the Maldives has decided to halt any new PSIP projects in the country, due to the massive economic impact of COVID-19 that has left shortcomings in the estimated income of the country.

Around MVR 10.45 billion is designated or PSIP projects from the MVR 37.8 billion state budget for 2020.

Speaking in a news conference today, Finance Minister Ibrahim Ameer provided details of how the government would be working to reduce expenditure. The PSIP budgets planned for this year that has not yet been commenced will be halted, for the time being, said Minister Ameer.

“Due to difficulties in the supply chain, it is expected that current projects might also have to be halted.” Said Minister Ameer.

Other than that, the Minister stated additional measures aimed at curbing government expenditure. They include:

• Reducing the transport and travel expenses of the government by 33 percent
• Ceasing the purchase of land vehicles
• 30 percent reduction of the training budget
• 59 percent reduction of renovation expenses