The Ministry of Finance has emphasized the necessity of implementing structural reforms and enhancing the operational efficiency of State-Owned Enterprises (SOEs) to curb subsidy spending. Since electricity generation represents the state’s most significant expenditure, the government provides subsidies to maintain stable tariff rates, ensuring that the public is shielded from the impact of rising global fuel prices.
However, the Ministry highlights that transitioning to renewable energy and modernizing power plants are essential steps toward reducing these financial burdens. As part of the ongoing efforts to streamline enterprise operations, the government has already initiated key measures, including the transfer of utility services in certain atolls to STELCO.
