2016-10-01 14:59:25
Did not cut subsidies, but we were forced to reduce it : President’s office
Did not cut subsidies, but we were forced to reduce it : President’s office
Estimated time to read the article : 3 min, 10 secs
Minister at President’s office, Mr. Ahmed Zuhoor have said that the government did not cut the subsidies on staple food items completely, but were reduced to reduced it.
Speaking to the press at the President’s office Mr. Zuhoor said that if subsidy was cut completely, the prices will increase by more than 30% of what it is now.
Mr. Zuhoor said that one of the reason government took this decision is because, world financial institutions has been recommending to do this for a long time now. “Maldives do not get any financial aid now, so a lot of developmental projects are financed by loans from these institutions. So sometimes we have to consider their recommendations as well” said Zuhoor.
Mr. Zuhoor said that a lot of services in the Maldives are heavily dependent on subsidies. “Staple food, electricity, healthcare and education including free books. All these things are dependent on subsidies. Even sewage systems and harbor construction programs are subsidized. We brought some changes to electric and food subsidies because we were forced to do it” said Mr. Zuhoor.
He said that even though, low income families will still get subsidies via NSPA and other eligible people can still register to receive subsidies.
Mr. Zuhoor further said that the price of staple food items like rice, flour and sugar are rising in world markets and everyone should accept that the prices will rise in Maldives as well. “That inflation is inevitable. The price of one can of powder milk has increased from Rf50 to Rf250. People believe that this is inflation and they don’t talk about it. The same way people should accept that price of staple food items will increase too” said Mr. Zuhoor.
Mr. Zuhoor said that previous governments also wanted to bring this change but they never could do it because it might be politically unpopular. “Even we do not want to increase the prices of staple food. But to improve the economy and to develop the country we were forced to do it. The people will benefit from this” said Mr. Zuhoor.
Mr. Zuhoor also said that this government will listen to the people and will deliver what the people of Maldives wants.
Speaking to the press at the President’s office Mr. Zuhoor said that if subsidy was cut completely, the prices will increase by more than 30% of what it is now.
Mr. Zuhoor said that one of the reason government took this decision is because, world financial institutions has been recommending to do this for a long time now. “Maldives do not get any financial aid now, so a lot of developmental projects are financed by loans from these institutions. So sometimes we have to consider their recommendations as well” said Zuhoor.
Mr. Zuhoor said that a lot of services in the Maldives are heavily dependent on subsidies. “Staple food, electricity, healthcare and education including free books. All these things are dependent on subsidies. Even sewage systems and harbor construction programs are subsidized. We brought some changes to electric and food subsidies because we were forced to do it” said Mr. Zuhoor.
He said that even though, low income families will still get subsidies via NSPA and other eligible people can still register to receive subsidies.
Mr. Zuhoor further said that the price of staple food items like rice, flour and sugar are rising in world markets and everyone should accept that the prices will rise in Maldives as well. “That inflation is inevitable. The price of one can of powder milk has increased from Rf50 to Rf250. People believe that this is inflation and they don’t talk about it. The same way people should accept that price of staple food items will increase too” said Mr. Zuhoor.
Mr. Zuhoor said that previous governments also wanted to bring this change but they never could do it because it might be politically unpopular. “Even we do not want to increase the prices of staple food. But to improve the economy and to develop the country we were forced to do it. The people will benefit from this” said Mr. Zuhoor.
Mr. Zuhoor also said that this government will listen to the people and will deliver what the people of Maldives wants.