Monday 22nd Jul 2024
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MP Ahmed Azaan

MP Azaan Criticizes Previous MDP Government for Borrowing Without Benefiting the State

Hithadhoo Central MP Ahmed Azaan has criticized the previous MDP government for borrowing billions of MVR without providing any benefits to the state. Azaan made these remarks during a debate on the state debt bill tabled by Funadhoo MP Mohamed Mamdhooh on behalf of the government.
Azaan highlighted that the bill contains several crucial measures for the country, including guidelines on state borrowing, debt management, and public disclosure of information related to public debt. He pointed out that, for the first time, the bill provides for the establishment of a debt management office, which will offer both citizens and foreigners accurate information about the state's debt.
Azaan emphasized that the biggest advantage of this move is that it will make it easier for the country to raise funds from international capital markets. He noted that the state's debt is currently at an unprecedented level and clarified that the current government did not create this situation; the debt stood at MVR 120 billion when they came to power.

Azaan added that borrowing itself is not inherently problematic; the critical issue is how the borrowed money is utilized. He explained that during the MDP regime, when the debt increased by MVR 60 billion, the government did not take any measures to increase state revenue.

Azaan further pointed out that the previous administration had executed various projects across the country under different names, but no benefits have been seen, and wealth had been concentrated among a particular group of people. He concluded that the current government has inherited a massive debt created by the previous MDP government.