President Ratifies National Fiscal Responsibility Bill

President Dr. Mohamed Muizzu has ratified the National Fiscal Responsibility Bill, marking a significant step toward ensuring sustainable, transparent, and accountable financial governance in the Maldives. The bill, passed during the 55th sitting of the 20th Majlis on November 27, 2024, replaces the existing Fiscal Responsibility Act (Law no. 7/2013).

The new law introduces a robust framework for fiscal discipline, permitting government borrowing from the Central Bank for cash flow management with a ceiling of 2.5% of the average revenue collected over the preceding three years. It also emphasizes enhanced accountability, requiring the Minister of Finance to submit detailed fiscal plans, including a Fiscal Responsibility Charter, Fiscal Strategy Statement, Budget Statement, and Risk Statement to Parliament.

The Auditor General will oversee the implementation of the law, preparing detailed reports to Parliament. Parliament, in turn, will analyze the fiscal impact, assess government performance, and provide recommendations based on findings.

The first Fiscal Responsibility Charter under this law must be published in the Government Gazette within six months of its enactment. The bill’s provisions will take effect six months from the date of ratification.

President Muizzu's ratification underscores the government’s commitment to fostering long-term fiscal sustainability and aligning public finance management with international best practices.