The Government’s plan to conduct a comprehensive review to right-size the Civil Service and manage the public sector wage bill has raised concerns, according to Independent MP Faiyaz Koya. He indicated that this move could lead to increased migration, as young, educated staff may perceive the situation as unstable and opt to leave.
Koya also criticized the Government’s handling of issues such as the anticipated slowdown in the tourism industry, the worsening skills shortage, high immigration rates, the improved business climate, and climate change challenges. Additionally, he pointed out that the Government has failed to provide sufficient incentives for the MSME sector.
Regarding economic calculations over the past 16 years, Koya claimed that the Government’s figures are incorrect and that the country experienced its highest growth during those years. He argued that the MSME sector, crucial for any country’s growth, has been stifled over the past 18 months.
Further, Koya mentioned that shopkeepers nationwide feel unprepared for upcoming economic challenges, underscoring the current lack of readiness.
He also criticized the tax policy changes for water bottling companies. According to Koya, last year’s budget allowed these companies a tax-free holiday, but this year, local water companies are facing a five-cent tax increase from one cent, a 500 percent hike. He called this a “hoodwink,” expressing that the Government initially offered tax relief only to impose a significant tax shortly after, leading to discontent among water bottling companies.
Koya ultimately did not support the budget.