MP Mohamed Saeed (Maavah), the vice president of the opposition People’s National Congress has criticised the government for its decision to print more money.
In a tweet he posted today, MP Saeed noted that the government had requested for the suspension of clauses (a), (d), and (e) of Article 23 to print MVR 6.5 billion. He asked if this was responsible.
“What’s the difference between this and the law of the jungle?” he asked.
In response to the Covid-19 pandemic in 2020, the Ministry of Finance had successfully requested the Majlis for a suspension of adherence to certain articles in the Fiscal Responsibility Act in order to print money. The government printed MVR 4.4 billion, as a result.
The Ministry of Finance has now requested the Majlis for an extension of that suspension for an additional year. This is the third time that the Ministry of Finance has requested that suspension for the purposes of printing more money.
The government has planned to convert the MVR 4.4 billion that would be printed by the end of 2021 into a 50-year bond. The government will print an additional MVR 2.5 billion next year.
Although many have expressed their concern at the government’s decision, many MDP activists and politicians are defending it.