The Finance Ministry has cautioned that the government’s fiscal expenditure could become unsustainable if salary spending is increased beyond current levels.
The government has proposed a budget of MVR 64.2 billion for next year, reflecting a rise of MVR 2.4 billion compared to the previous year. Of this, MVR 17 billion has been allocated for salaries and allowances, including MVR 8.6 billion for salaries and wages, MVR 6.1 billion for allowances, and MVR 2.3 billion for pensions.
Salaries and allowances for public servants remain the single largest expenditure item in the budget, driven in part by increased staffing and pay harmonization efforts aimed at standardizing state salaries.
Speaking before the Parliamentary Budget Committee, Deputy Finance Minister Ahmed Saaid Musthafa said rising salary expenditure is the biggest challenge to stabilizing the state's fiscal position. He noted that next year’s budget allocates MVR 14.8 billion for salaries alone, rising to MVR 17 billion when pension payments are included.
Saaid also highlighted the need for additional staff in key institutions such as Customs and the Anti-Corruption Commission, but said the growing employee-related expenditure limits the budget available for other legally mandated responsibilities in these agencies.
The government has proposed a budget of MVR 64.2 billion for next year, reflecting a rise of MVR 2.4 billion compared to the previous year. Of this, MVR 17 billion has been allocated for salaries and allowances, including MVR 8.6 billion for salaries and wages, MVR 6.1 billion for allowances, and MVR 2.3 billion for pensions.
Salaries and allowances for public servants remain the single largest expenditure item in the budget, driven in part by increased staffing and pay harmonization efforts aimed at standardizing state salaries.
Speaking before the Parliamentary Budget Committee, Deputy Finance Minister Ahmed Saaid Musthafa said rising salary expenditure is the biggest challenge to stabilizing the state's fiscal position. He noted that next year’s budget allocates MVR 14.8 billion for salaries alone, rising to MVR 17 billion when pension payments are included.
Saaid also highlighted the need for additional staff in key institutions such as Customs and the Anti-Corruption Commission, but said the growing employee-related expenditure limits the budget available for other legally mandated responsibilities in these agencies.
