The Maldivian government welcomes the statement issued by Mr. Rodrigo Cuberto, mission Chief for the Maldives of the International Monetary Fund on the implementation of fiscal adjustment measures.
The IMF statement clearly reaffirms support for the government’s economic policy; in particular the plans to reduce spending on public sector wages and in implementing budget restrictions and control.
The new administration inherited unprecedented levels of debt from the previous regime.
In order to ensure economic stability and long term prosperity, it is essential that the government breaks away from the reckless policies of the past, reduces spending and brings the budget deficit under control.
The IMF statement warns that if expenditure on public sector wages increases, the economic situation in the country will deteriorate, as inflation rises and the money in people’s pockets is not worth as much at the market.
The IMF also notes that an increase in the government wage bill may jeopardize prospects for international support for the Maldives, threatening economic recovery.
The government is determined to ensure long term economic stability and prosperity.
Increasing civil servants’ salaries will undermine the economic recovery and put the future prosperity of every Maldivian at risk.
The Maldives government is fully committed to work consistently with the fiscal framework envisaged in the IMF- supported program.
Following the IMF statement, President Nasheed urged “all parties to work together to ensure that decisions are made with the best interests of the economy and the Maldivian people in mind.”
