Fayyaz Criticises Government’s Cost-Cutting Measures

Former Economic Minister and Chairman of the Maldivian Democratic Party (MDP), Fayyaz Ismail, has openly criticised the government’s decision to cut salaries for politicians and corporate employees. 

He argued that a significant reduction in the number of political appointments should precede such cost-cutting measures as part of a broader economic reform effort.

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އާންމު ރައްޔިތުން އަތުން އަދި ވިޔަފާރިތަކުން ނަގާ ޓެކްސް އެތައް ތަނަކުން ބޮޑުކޮށްފައި، ސިޔާސީ ވަޒީފާތަކުގެ މުސާރައިން 10 އިންސައްތަ އުނިކުރަން ނިންމި ނިންމުމަކީ ދެބޯގެރިދުއްވުމެއް. މިވީ 11 މަސްދުވަހުގެ ތެރޭގައި 3000 އާ ގާތްކުރާ އަދަދަކަށް ސިޔާސީ ވަޒީފާ އުފައްދައިފި.…— Fayyaz Ismail (@faya_i) October 23, 2024

In a public statement yesterday, Fayyaz described it as “shameful” to ask the public to shoulder additional financial burdens, including increased taxes, while the government continues to employ a large number of political staff. He contended that the government should first honour its commitment to the public by reducing the number of political appointments to 700, a figure he considers more reasonable and fiscally responsible.

The remarks come after reports that nearly 3,000 political jobs have been created in the last 11 months, a number Fayyaz believes is excessive and incompatible with the government’s claims of economic reform.

The government’s decision to introduce cost-cutting measures, including a 10% salary reduction for political office holders and employees of state-owned enterprises, has faced backlash. These cuts, which exclude banks, are part of President Mohamed Muizzu’s broader plan to curb spending and promote fiscal responsibility amid growing financial strain.

Fayyaz criticised the government’s dual approach of cutting salaries while simultaneously increasing taxes on the general public and businesses, describing it as “two-headedness.” He expressed concern that the government had not done enough to reduce internal costs before imposing financial burdens on citizens.

“Before asking the public to endure any form of financial hardship, the government must first show its willingness to reduce unnecessary expenditures,” Fayyaz said.

While the government has defended the salary cuts and tax increases as necessary for economic stabilisation, Fayyaz and other opposition figures argue that the focus should be on internal restructuring rather than placing the burden on the public. This sentiment resonates with many citizens, who fear they are being disproportionately affected by the government’s economic reforms.