MALE, Aug. 26 (Xinhua) -- Maldives' Ministry of Finance has issued a circular to all state institutions requesting cuts expenses in order to weather the economic blowback of the COVID-19 pandemic, state media reported here Wednesday.

A circular signed by Minister of Finance Ibrahim Ameer called for cuts on staff, maintenance, capital expenditure, and non-essential travel by all state institutions. The circular has also called for a freeze on hiring and allocation of new allowances unless approved by the ministry.

In order to mitigate state expenditure amid the COVID-19 pandemic, state institutions have been advised to implement strategies to reduce the need for overtime work, and to close government offices by 2:30 pm.

Revenue collected by the state declined 75 percent in the second quarter of 2020, compared to the same period last year, due to the economic fallout of COVID-19 lockdowns that affected tourism and related services, the country's pillar industry.

Losses in revenue from the Goods and Services Tax (Tourism Sector), Green Tax, Tourism Land Rent, Airport Service Charge and Airport Development Fee were the main reason for the decline. Enditem

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