Male. Maldives President Mohammed Muizzu is facing a serious economic crisis due to tensions with India. The financial condition of the country is so bad under his rule that he has had to cut his salary by 50 percent.
Muizzu does not have money to pay salaries to government employees. Maldives’ economic situation has become shaky since Muizzu prioritized relations with China and distanced himself from India. Tourism is the main source of income for Maldives but the dispute with India has had a negative impact. The Maldivian government has recently taken several steps to address the economic crisis, including salary cuts in government jobs.
President Muizzu’s office has announced that his annual salary will be reduced from 1.2 million rufiyaa (about Rs. 65.68 lakh) to 600,000 rufiyaa (about Rs. 32.86 lakh). This amount is still double the average household income of Maldives of 316,740 Rufiyaa, about Rs 17.33 lakh. According to reports, Muizzu’s office has decided to exempt judges and MPs from the salary cut, but the President is hoping that they will voluntarily agree to the 10% cut. Muizzu has also decided to cancel more than 225 political appointments, including those of his ministers, amid this economic crisis. It includes seven ministers of state, 43 deputy ministers and 178 political directors.
According to President Muizzu, this step is likely to save the country about $370,000 every month. However, Muizzu’s government said in September that their financial problems were temporary and they did not want to seek help from the International Monetary Fund. In such a situation, improving the economic situation is being considered a big challenge for the Muizzu government in the coming times.