The ruling PNC has said that the decision taken by President Dr Mohammed Muizzu is a strong step to ensure the sustainability of the country's finances.

President Dr Muizzu announced special measures in line with the economic reform agenda proposed as part of the 2025 national budget yesterday. As an initial step, the President stated he will not be taking 50 percent of his salary as President

Additional measures included a salary reduction of 10 percent for all politically appointed individuals, a salary reduction of 10 percent for all staff of state-owned enterprises, excluding banks, capping the take-home salaries of heads of these enterprises at MVR 90,000, a proposition to relevant bodies to reduce the salaries of heads of independent institutions by 10 percent, and a proposition to the heads of the Judiciary and Parliament to reduce their salaries by 10 percent.

In a press release issued yesterday, PNC said the President's decision was strong and courageous. They further added that in recent years state expenditure had increased alarmingly with the gap between revenue and expenses increasingly becoming bigger. They also stressed that the then government had turned a deaf ear to financial institutions advising for fiscal reforms to mitigate the issues created by this.

PNC further noted that the previous government had not taken any strong measures to control the budget with resulted in the budget deficit of 2022 to remain at MVR 11.3 billion, up from an expected 9.8 billion. The numbers for 2023 stood at MVR 13.5 billion, from an expected MVR 8.6 billion. The budget deficit increased while expenditures were not contained in revenue, the PNC said.

"This is a strong step taken by the President as the Head of State to ensure the sustainability of the Maldivian finances. It is a politically difficult decision, but it must be taken in the interest of the country," PNC said in a statement.

The President said the measures would exempt those earning less than MVR 12,000.