The cabinet has decided to take austerity measures to alleviate budget expenditure, from 1st September.
The cabinet took the decision following recommendations by the Ministry of Finance and Treasury and recommendations by two cabinet committees, at a cabinet meeting held at the President’s Office this afternoon.
The measures include, reducing 20 percent from the salaries and allowances of government appointees ranked deputy minister and above and 10 percent from the salaries and allowances of other political employees.
It was also decided to hold discussions with the Civil Service Commission on reducing the salaries and allowances, by 5-10 percent, of the civil service staff.
The cabinet also decided prohibiting overtime and holding official government events during the weekend.
In addition, the cabinet decided to:
- reduce the number of government employees where possible.
- release government rented places – except where necessary – before the end of September
- reduce the number of overseas and local visits
- use government venues for holding events instead of renting
The cabinet also discussed on the preparatory work of submitting bills to the Majlis on tax reform.
The cabinet members noted the need to reform the legal framework to the taxation system.
The cabinet decided to appoint a committee to consider tax reforms before sending the bills to the People’s Majlis.
The committee will be composed of, among others, Parliament members of the political parties, members of People’s Majlis, ex-officio appointees from the Ministry of Finance and Treasury, Attorney General’s Office, the Judicial Service Commission and the Law Society.
The cabinet members also recommended to send letters to the parliamentary group leader of DRP, Mr Ahmed Thasmeen Ali and parliamentary group leader of MDP, Mr Reeko Moosa Maniku, regarding the matter.
