Parliament Passes Fiscal Responsibility Bill and Public Debt Bill

The Parliament of the Maldives has passed the Fiscal Responsibility Bill and the Public Debt Bill, with both receiving the support of all 81 members present.

The Public Debt Bill, proposed by Fonadhoo MP Mohamed Mamdooh (Mandey) on behalf of the government, mandates the establishment of a dedicated office for debt management within six months of the bill becoming law. Once operational, all functions currently performed by the Debt Management Department of the Ministry of Finance will be transferred to this new office.

The bill introduces rules for the disclosure and reporting of debt information, as well as regulations for sovereign guarantees for debt undertaken by councils and government-owned companies. It aims to ensure that government borrowing and debt management are conducted in a manner that safeguards the country's economic sustainability and the prosperity of future generations.

The Fiscal Responsibility Bill, proposed by PNC MP Ibrahim Naseem of Thulusdhoo on behalf of the government, replaces the Accountability for Public Expenditure Act. This new legislation establishes a strong system of enforceable fiscal rules to ensure sustainable, transparent, and accountable management of public finances.

The bill requires the Ministry of Finance to formulate fiscal policy and publish a five-year Charter of Fiscal Responsibility within six months of the start of each presidential term. The charter will outline the government's long-term fiscal strategy and be made publicly accessible through the official gazette.

Both bills are part of the government’s legislative agenda for this session of Parliament, which includes the introduction of 37 new bills.