Ahmed Azaan Marzooq, Member of Parliament for Central Hithadhoo, has criticized the excessive spending of state-owned enterprises (SOEs), stating that the financial losses from such mismanagement far exceed the government's cost-cutting savings.
Speaking at a committee meeting, Azaan expressed support for the proposed 10% salary reduction for parliament members as part of broader economic reforms. However, he pointed out that studies indicate salary reductions across all sectors would only save MVR 14 million annually—a mere 0.02% of the MVR 56 billion national budget. He argued that this amount is insignificant in the grand scheme of state expenses and suggested merging certain institutions and eliminating unnecessary entities as more effective cost-cutting measures.
Azaan highlighted that state-owned companies often rent heavy machinery, excavators, and vessels at rates far above market prices. For instance, he cited cases where excavators are rented at MVR 50,000 per month, amounting to MVR 18 million annually, which is double the standard market rate. He emphasized that by addressing such inefficiencies, the government could save at least MVR 100 million, a far greater impact than salary reductions.
He also noted that many government officials plan their lives based on their expected salaries, particularly in Malé, where the cost of living is high. Azaan stressed that reducing salaries without addressing structural inefficiencies could lead to unnecessary hardships for officials who rely on their incomes to cover basic expenses.
Several other MPs echoed Azaan’s concerns. Eydhafushi MP Ahmed Saleem suggested that reducing salaries would only generate public dissatisfaction without meaningful financial benefits, and instead urged discussions with the Finance Minister on alternative cost-cutting measures. Dhiggaru MP Ahmed Nazim recommended merging redundant institutions, such as the Media Council and Broadcom, as well as the Integrity Commission and the Human Rights Commission, to save millions annually.
The discussion follows President Dr. Mohamed Muizzu’s proposal to reduce state expenditure over the next two years, including a 10% salary cut for MPs, judiciary officials, and employees of SOEs and banks. However, Azaan and several other MPs argue that targeting wasteful spending within state companies would be a more effective approach to financial reform.