Fiscal Responsibility Charter deadline to be set at 2 years

An amendment has been proposed to the Fiscal Responsibility Act to set the deadline at two years for the five-year Fiscal Responsibility Charter that every administration has to formulate. 

As per the Fiscal Responsibility Act, submitted by the government and passed last year, a five-year Fiscal Responsibility Charter has to be created by the Finance Minister and published in the gazette within six months of the start of each presidential term. 

The purpose of this is to ensure that the fiscal policy in each five year term is sustainable and transparent. 

However, ruling People's National Congress MP for Huraa constituency, Dr Anara Naeem, proposed an amendment to the Act which seeks to extend the six month deadline to 24 months. 

She further proposed that two years be granted instead of six to draft regulations which need to be set in place after the Act comes into force. 

The bill also seeks to remove the article which states that a presidential term comes into effect in 18 months.

The first reading of the bill is on agenda for today's parliament sitting, with the preliminary debate also to be held today. 

As per the Fiscal Responsibility Act, the government may borrow from the central bank, Maldives Monetary Authority (MMA), to manage cash flow, with the amount capped at 2.5 percent of the average revenue over the past three years.