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Parliament permits state to exceed budget limit on selling bonds

Shahudha Mohamed
01 September 2020, MVT 09:16
MPs at a parliament sitting. PHOTO: PARLIAMENT
Shahudha Mohamed
01 September 2020, MVT 09:16

The Parliament, on Monday night, permitted the incumbent administration to sell more bonds than the predetermined amount in the state budget.

According to the state budget, MVR 4.6 million can be generated by selling bonds internationally, while MVR 930 million can be generated by selling bonds locally.

However, Maldives Monetary Authority (MMA)'s Governor Ali Hashim submitted a letter to the Parliament, requesting to go over the limit in the state budget.

In the letter, Hashim noted that the total amount may exceed the value in the budget, with the attempts that are currently underway to sell bonds to the State Bank of India (SBI).

Furthermore, Hashim wrote that the Attorney General's (AG) Office provided counsel to the Ministry of Finance regarding the matter, stating that it can be considered that the budget was followed if the net financing value could be reduced below MVR 6 billion.

Therefore, parliamentary representative of Thaa Atoll's Kibidhoo constituency and Public Finance Committee's Chair Mohamed Nashiz proposed to permit the state to sell bonds, as long as net financing does not increase MVR 6 billion by year-end.

This proposal was approved with a majority vote of 65 members present during Monday night's sitting.

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