Political appointee reduction must precede councilors cap: Fayyaz

Maldivian Democratic Party (MDP) Chairperson and former Economic Minister Fayyaz Ismail on Monday said the reduction of political appointees should precede capping councilors number.

Fayyaz said reduction of councilors and lawmakers is possible through inclusive discussions involving public opinion.

President Dr. Mohamed Muizzu on Sunday evening made significant announcements towards state administration.

He announced the government will seek reductions on the number of lawmakers, councilors, and independent commissions with the aim of reducing state expenditures. He also announced the government will propose simultaneous presidential and parliamentary elections in line with these efforts.

“Whether political appointee figure is reduced before the number of council members is reduced,” Fayyaz said in a post on X.

Fayyaz said the government must take necessary action instead of procrastinating about the changes, and added MDP will welcome any progressive change that benefits the public.

The former minister also alleged lack of integrity in the proposed fiscal reforms in light of current economic challenges.

Owing to existing debt repayment challenges, Fitch Ratings recently downgraded the Maldives’ credit rating recently.

Ministry of Finance, in response claimed robust fiscal reforms poised for long-term sustainability will improve in future rating reviews while enhancing debt repayment capabilities.

Fayyaz said that though the ministers claim state’s fiscal conditions were stable, their statements of “imminent threats” will result in the loss of public and investor confidence towards the government.

He demanded President Muizzu to be transparent about the government’s current conditions, and disclose state’s plans to the public. Fayyaz also demanded the state must clarify how it intends to pay for the students studying abroad on student loan schemes.

While Fayyaz highlighted the student loan scheme issues, an emergency motion was submitted by MDP at Monday’s parliamentary sitting alleging the state was failing to make regular payments to students under the schemes. The motion however, was dismissed with 59 votes.

While the cabinet approved a fiscal reform agenda last Sunday, the Ministry of Finance has released a fiscal reform strategy from 2024 to 2028, highlighting decisions to increase the rates of prominent taxes including GST, import duties and telecom rates.