The Government’s plan to conduct a comprehensive review aiming to resize the Civil Service and manage the public sector wage bill has raised concerns. This issue was brought to light by Independent MP Faiyaz Koya.
Koya expressed that this announcement could lead to increased migration. “Our young and educated staff may feel the situation is too unstable and decide to leave, which is already happening,” he said.
He criticized the Government for its failure to address several critical issues, including an expected slowdown in the tourism market, a worsening labor skill shortage, high immigration rates, and climate change challenges. Koya also pointed out that the Government has not provided adequate incentives for the Micro, Small, and Medium Enterprises (MSME) sector.
“Even their calculations over the past 16 years are incorrect. The country experienced its highest growth during that period. The MSME sector, essential for economic growth, has been stifled for the last 18 months,” Koya stated.
Koya emphasized the struggles of shopkeepers across the country, questioning the nation’s preparedness for future economic challenges. He specifically criticized a recent policy change affecting local water bottling companies. “The Government enacted a significant tax increase on these companies, moving from a one-cent tax to a five-cent tax, which is a 500 percent increase. Just 12 months ago, these companies were content with a tax-free status, but now they are not,” he explained.
Due to these issues, the Independent MP did not support the budget.