Finance Ministry refutes reports of 40 percent police and armed forces salary increase

Finance Minister Ahmed Inaz has disputed claims by People’s Alliance (PA) MP Abdulla Yameen that police and armed forces MPs will receive a 40 percent salary increase in 2012.

Instead the 2012 budget for police and armed forces will increase 9.51 percent “to cover the salary increment for officers who receive promotion and salaries of those who are to be employed next year,” Inaz told newspaper Haveeru.

The 2012 budget includes the provision for 50 additional police officers, while the Maldives National Defence Force (MNDF) will only recruit to vacant posts, Inaz stated.

Yameen allegedly learned of the proposal from the budget review committee rather than the budget itself, Haveeru reported earlier this week.

The Civil Service Commission (CSC) has meanwhile requested parliament include any unpaid civil servants’ salaries and allowances in the 2012 budget without conditions.

Several independent institutions, including the Maldives National University (MNU), meanwhile raised concerns this week over cuts made by the Finance Ministry to their proposed budgets for 2012.

The program-based budget submitted by some of the institutions was revised by the Finance Ministry to maintain recurrent expenditure in line with projected income.

The Rf 14.6 billion (US$946.8 million) state budget for 2012 was submitted to parliament on November 28 by Finance Minister Ahmed Inaz. It is now being reviewed by parliament’s budget review committee headed by local business tycoon, MP Gasim Ibrahim.

The committee met with senior officials of the Local Government Authority (LGA) and the MNU this week, as well as several other institutions, during which they complained about cuts made by the Finance Ministry during the revision process prior to the submission to parliament.

Finance Minister Inaz was not responding to calls at time of press.

The Constitution requires parliament to finalise the budget before December 28. Previous budget committees have significantly increased the budget submitted by the Finance Ministry.

President Mohamed Nasheed’s Press Secretary Mohamed Zuhair observed that additional subsidies and salary increases allocated by parliament for political reasons made it “very difficult” for the government to adhere to the budget.

” “The budget submitted to parliament is a product of exhaustive consultation. Last year no reference was made as to which sector the Finance Ministry should deduct the extra expenditure, and the Minister is required to use his discretion,” Zuhair said.

The Finance Minister has claimed that the government will cover recurrent expenditure in next year’s budget and reduce the deficit to 9.7 percent. However Yameen has claimed that Rf2.3 billion (US$150 million) has been allocated to repaying loans, and that the country’s debt now amounts to Rf 16,000 (US$1037) per head.


4 thoughts on “Finance Ministry refutes reports of 40 percent police and armed forces salary increase”

  1. CSC requested Majlis to include the amount that was deducted from civil Servants due to the economic situation etc while the political appointees kept going up.

  2. One can only laugh; the government proposes a budget which supposedly is good for the country, is a little unbalanced, but OK etc.

    Then comes along the monkeys in the cage, i.e. Parliament. They scupper the whole thing, by including all sorts of extras as they see fit.

    End result is that the government is forced to beg and borrow more to meet an even more inflated budget. In a years time, the same monkeys start shouting at the government having borrowed and spent too much.

    Hysterical or what?

  3. I wonder whether Gasim is the best person to run this committee. When he was finance minister we saw our debt increased by 700%. This guy has been a liability. He owes so much money to MMA and got a free ride through Ilyas Ibrahim, buy selling oil which was initially purchased by STO back to them.


Comments are closed.