Auditor General slams budget: No spending cuts in sight

Auditor General Hussain Niyazi has criticized the government’s record MVR 64.2 billion budget for 2026, saying it lacks any concrete plans to reduce spending.

Speaking before the State Budget Review Committee on Sunday, Niyazi said the absence of cost-cutting measures is unsustainable and will worsen national debt. He noted that while previous budgets at least included proposed austerity steps, even if not implemented, this year’s budget omits them entirely.

“We are postponing and delaying every year. How far can we go like this? Cost-cutting has now become the devil’s wedding,” Niyazi said, invoking a Maldivian proverb that refers to something endlessly postponed and unlikely to happen. “The Finance Ministry hasn’t even included [spending cuts] in this year’s budget book.”

He warned that without decisive action, the government risks losing control over its debt burden. Niyazi urged lawmakers to pass expenditure reduction measures alongside the budget, even if they are not formally included.

Director General Mohamed Shan, speaking on behalf of the Auditor General’s Office, said the proposed revenue estimate of MVR 40 billion was sound. However, he echoed concerns about rising expenditure and the lack of consolidation plans for 2026.

“This year’s budget also included austerity policies to improve the country’s financial situation. But those policies were not implemented,” Shan said.

The government had initially proposed pension and subsidy reforms to curb spending, but later reversed course. President Dr. Mohamed Muizzu opted to assign projects to state-owned companies instead, citing cost-saving benefits.

The move has sparked concern among private contractors, who say they are being sidelined. Meanwhile, the government has awarded 206 projects to private firms without bidding, prompting the opposition MDP to prepare legal action.

Transparency concerns have also grown. The Finance Ministry has not published weekly expenditure and revenue reports for months. Officials said the delay was due to unresolved spending from the previous administration. Finance Minister Moosa Zameer later revealed that MVR 2 billion had yet to be accounted for.