Auditor General calls for limits on staff numbers over rising salary expenditure

Auditor General Hussain Niyazy has warned of rising expenditure on wages from the state budget, stressing the urgent need to control the growth of the civil service workforce.

The Auditor General’s Office, on Tuesday, released its professional opinion and technical report on the proposed state budget for the upcoming year.

Auditor General’s Technical Recommendations on the Proposed Budget 2027 https://t.co/qWUXQMsYTd https://t.co/w9NGlKE1LT

— AGO (@AuditMV) November 10, 2026

The government has submitted a budget of MVR 59.7 billion for next year. Excluding debt servicing, capital contributions and loan issuances, total projected expenditure stands at MVR 52.6 billion, representing a 6.6 per cent increase compared to the revised budget estimates for the current year.

The budget projections show that expenditure on salaries and allowances for state employees has increased consistently over recent years, with MVR 14,420 million estimated for these costs next year. The budget document states that this increase is primarily driven by changes to salary structures across various state institutions under the pay harmonisation policy.

In his recommendations, the Auditor General highlighted that the total number of state employees has risen significantly in recent years. Noting that personnel costs account for the largest share of the state's recurrent expenditure, he stressed the importance of improving workforce productivity and regulating recruitment to manage the growing financial burden.

The practice of awarding positions in state-owned enterprises for political purposes has been a recurring issue under successive administrations. Furthermore, the number of political appointments has increased substantially. These practices have adversely affected national productivity and the economy while placing considerable financial strain on both the government and state-owned companies. Consequently, annual budget allocations for salaries continue to increase.