MDP MPs warn new pay hikes will add another MVR 40 million to state payroll

Lawmakers from the main opposition Maldivian Democratic Party (MDP) urged the Parliament’s Public Accounts Committee on Sunday to reverse its decision to approve an increase in the salaries of public officials including the Speaker of Parliament and cabinet ministers, warning the move will add another MVR 40 million to the state’s annual expenditure.

In a press statement signed by 12 out of 13 MDP members who sit at the Parliament, the lawmakers condemned the decision to approve the pay hikes for the Speaker and cabinet ministers even as ordinary citizens struggle with the country’s economic downturn and the rising cost of living as “highly irresponsible.”

The lawmakers noted that the decision to increase the salaries also comes as state spending continues to exceed the revenue it generates, widening the overall budget deficit to MVR 4.5 billion.

They also expressed concern over the multiple tax hikes approved by the Parliament.

“We therefore call for a reversal in this decision as increasing the salaries and allowances of top officials as approved by the Public Accounts Committee of the People’s Majlis will increase the state’s spending by another MVR 40 million per annum,” reads the statement.

The lawmakers said that the block grant allocated for local councils from the state budget is designed to fulfill multiple public needs, and that councils have been expressing concern that amending the salaries of councilors without making any changes to the block grant will disrupt numerous public services.

Highlighting on the high public concern over pay harmonization, the lawmakers said that the decision to approve the pay hikes while a resolution submitted with the Parliament back in June last year over overtime pay for education and health sector workers remains stalled was also deeply concerning.

They accused the ruling People’s National Congress (PNC) of using its supermajority at the Parliament to block any and all attempts to stop such decisions and hold the government accountable.

On Wednesday, the Public Accounts Committee approved amendments that will see the monthly pay of the Speaker raised to MVR 95,000, along with increasing the car allowance to cabinet ministers and the salaries of local councilors.