Reforms to subsidy system will be implemented in phases: Finance Minister

Minister of Finance Moosa Zameer has announced that the reforms to the subsidy-issuing system will be implemented in phases. He made the remarks while addressing the Parliament’s Budget Committee. In addition to the finance minister, the committee summoned the Governor of Maldives Monetary Authority (MMA) Ahmed Munawwar and the Auditor General Hussain Niyaz. Speaking at the committee, Minister Zameer stated that while the government has introduced significant reforms aimed at reducing the state expenditures, it has placed priority on ensuring that these reforms do not place an undue burden on residents. One of the key reforms outlined is the modification of the health insurance system. The state budget 2025, currently under review in Parliament, proposes extending private insurance packages to families of the Maldives National Defence Force (MNDF) and the Maldives Police Service (MPS), while also aiming to control government spending. Additionally, the reform will allow individuals to access healthcare services under the national insurance scheme, Aasandha, if their private insurance does not cover all expenses. Regarding the subsidy reforms, Minister Zameer emphasised that these changes are closely tied to the lives of residents, which is why the government decided to implement them gradually. He noted that a testing phase will be part of the process, ensuring a smooth transition. The minister anticipates that the transition of the subsidy system into one which issues subsidies to the residents who need it the most, will increase the prosperity of the nation. The first phase of the subsidy system reform is scheduled to begin in April 2025.