‘MVR15 Billion Stimulus Package Is Needed’

Thursday 7th of May 2020

‘MVR15 Billion Stimulus Package Is Needed’

The President of the Maldives has established a special allowance for healthcare workers in the frontline of COVID19. Under the government’s low cost policy, when the salaries of employees in public sector were cut down, frontline health workers were excluded from it. These workers risk their lives and distanced themselves from their families for the nation.

During the press conference held with Minister of Finance and Economic Minister on 7th May, Economic Minister Ibrahim Ameer stated that there has been a significant change in the income of workers in the public sector again. Previously, the salaries of those posts above Deputy Ministers were reduced by 20%.

However, those employees with a salary of MVR20000 and less remained unaffected. Income between MVR20000-25000 faced 25% reduction while MVR 25000-60000 were reduced by 30% and income above that were reduced by 35%. Further, the income of business owners were reduced by 25%.

Minister Fayaaz informed that SME Development Finance Corporation has provided loans to 38 people. He further stated that the government is looking into the impacts on freelancers and small businesses such as taxi driver and gyms due to the pandemic. This issue had been brought up by freelancers in the country, as they face a huge financial loss.

It was also revealed that after opening in July, it would take about a year/half a year to recover. During these times, MVR10-15 billion stimulus package will be required, said the Economic Minister.