The Parliament's Public Finance Committee has decided to hand over the management of the Sovereign Development Fund (SDF) to the Finance Ministry.
The SDF is currently managed by the Maldives Monetary Authority.
A motion was moved by Fuvahmulah South MP Mohamed Mumtaz to hand over the management of the SFD to the Finance Ministry during the last year's second session of the parliament. According to the proposed amendment to the Public Finance Act, the President will decide how to deposit money in the SDF and how to spend it on the advice of the Finance Minister. The fund will be managed by the Finance Ministry.
The bill was debated in the Finance Committee on Monday. If the amendment is passed as it stands, the SDF will become a fund subject to certain rules in the Public Finance Act.
The Finance Committee also decided not to amend the Public Finance Act such that only the minister has the power to borrow money and issue guarantees in the name of the state. The decision was made after consultation with relevant ministries and stakeholders. The committee members refused to allow the minister the power to borrow money and issue guarantees after the state debt exceeded MVR 100 billion.
The Auditor General's Office has suggested that it is not appropriate to give the power to borrow to the Finance Minister alone in a country like the Maldives.
