Minister of Finance Ibrahim Ameer has officially addressed a letter to the People’s Majlis, requesting a one year extension to the period of suspension for some clauses of the Fiscal Responsibility Act, so that the state may continue acquiring funds from the Maldives Monetary Authority (MMA) in order to manage it’s expenditure for the year.
The request was made in regard to the Article 36 of the Fiscal Responsibility Act, an extension for the suspension of clauses mentioned under subsections 1, 4 and 5 of Article 32 of the same Act. Under the article, the state will be able to acquire one percent of the state’s income from the MMA as overdraft, and will be obliged to repay the money to MMA over a period of 91 days.
Last year, the Maldives extended the overdraw limit to MVR 4.4 billion at the perusal of Finance Minister Ibrahim Ameer, along with a one-year suspension for the repayment clause, which will end on 26 April 2021. The government has acquired more than MVR 2.8 billion as overdraft while the Fiscal Responsibility Act’s limit is MVR 170 million.