Economy will be improved without printing notes: President Muizzu

The government’s efforts to stabilise Maldives' economy as pledged did not include printing new notes over the past year and the government will not resort to it in the future either, said President Dr. Mohamed Muizzu.

President Dr. Muizzu's administration inherited MVR 120 billion in debt from its predecessors. In his speech at the ceremony to commemorate Maldives' Republic Day, the President referred to this debt as one of the biggest debts in the country's history. He said that the value of Maldivian Rufiyaa had dipped due to the previous government printing MVR eight billion during their five years in power.

Despite the country facing an economic crisis, the president, in his speech, took pride in not having printed notes.

"I promised not to print money. I have not printed money for 51 weeks and two days [of the presidency]. I will not print money in the future either," he said.

He also detailed that the deficit financing by printing money has been stopped and that next year's budget was approved following consultation with international financing bodies. Additional amendments will also be made to it next year, he said.

These include changes to the subsidisation system, Aasandha, and pension, as well as state owned enterprises, allowing the system to better cater to the needs of the public, said President Muizzu.

He further said that his administration plans to establish a system to take from the riches and give to the poor, to ensure an equitable and fair effort to better living conditions of everyone.

The 2025 budget was prepared to implement this plan, he also said.

"To take from the rich and give to make everyone equal and fair. The budget was submitted to make it happen. God willing we will witness it, with the help of the public and members," President Muizzu said.

The President went on to say that laws and regulations have been amended to recover money owed to the state. To date, the government has recovered MVR 3.1 billion from various parties, he said, adding that this has reduced the debt undertaken by the government as well.

Sharing his administration's vision for the next seven years, President Muizzu said that their goal is to reinforce the country's economy and up Maldives' GDP to USD 10 billion. Under this plan, the proposed budget for next year aims to increase productivity and wealth of the people, he said.

The President said that since the government came to power, MVR 6.6 billion has been released to the public. This includes all bills below MVR five million owed to vendors, he explained.

When the government took over, the Sovereign Development Fund had USD two million but since then, the government has deposited USD 78 million in the fund, he also said. Money is being withdrawn from and deposited to the fund for various purposes, he added, explaining that the government is working to further increase the fund's balance.