Cash-strapped Maldives removes 228 government appointees to cut costs

Maldives President Mohamed Muizzu announced the removal of 228 political appointees across various government ministries as part of a broader effort to reduce government expenditure.
The cost-cutting measure is a key component of the administration’s Economic Reform Agenda, aimed at tackling the nation’s growing fiscal and external vulnerabilities.
President Muizzu shared the decision with the public on Tuesday via his official X account, saying, “As part of the Economic Reform Agenda, I have today instructed to remove 228 political appointees from various government ministries within the next 15 days.This includes 7 State Ministers, 43 Deputy Ministers, 109 Senior Political Directors, and 69 Political Directors. It will save Rf 5.714 million per month from the government budget.”
The Maldives President’s Office further detailed the move, framing it as a necessary adjustment to streamline government operations. “This significant reduction in political appointments aligns with the President’s broader efforts to ensure more efficient use of public funds,” the statement read.
The current government budget stands at MVR 49.5 billion for 2024, and Muizzu’s administration has consistently pushed for reforms to strengthen the Maldivian economy and reduce debt in the medium term.
This latest measure is part of a series of initiatives taken by the President since assuming office. Earlier this year, Muizzu introduced plans to establish a development bank in the Maldives and review the country’s economic policies to encourage growth and stability.
During the India-Maldives Business Forum held in Bengaluru on October 9, Muizzu praised India’s leadership in technology and innovation, underscoring the significance of India-Maldives collaboration in advancing the island nation’s digital future. He highlighted several key initiatives, including the integration of digital financial services and the launch of the RuPay card, as well as the Maldives’ commitment to climate action and multilateral cooperation.
Muizzu also encouraged Indian investors to explore opportunities in sectors such as renewable energy and sustainable tourism, noting the Maldives’ favourable business climate and shared cultural ties with India. “The Maldives offers an ideal environment for Indian investment, and their expertise can help us foster a sustainable future while supporting global climate action,” Muizzu had said.
His five-day state visit to India marked the second time President Muizzu has visited India this year, following his attendance at the swearing-in ceremony of Prime Minister Narendra Modi in June.