A resolution has been moved in the Parliament calling on the government to further strengthen its efforts to effectively manage public debt.
The resolution moved by Galolhu North MP Eva Abdullah was introduced in the Parliament at Tuesday's sitting.
The resolution states that the Parliament's Whole House Committee's report on the extent of the state debt and debt management, and revenue capabilities to service the debt was approved by the Parliament on October 27, 2020. Despite Parliament's directives to the then-government to prepare a report and submit it after reviewing its medium-term debt strategy and identifying the challenges in implementing the debt strategy, the report was not shared by the government, the resolution noted.
The resolution further said that the Maldives government has received technical assistance from the International Monetary Fund (IMF) to reform the Public Expenditure Accountability Act, which came into force in 2013. While the proposed amendments to the Act are on the legislative agenda of the current government, the resolution emphasized the importance of every incoming government transparently disclosing the extent of the state debt, management strategies, and repayment plans.
The resolution also noted with concern that the public investment programs in the Maldives do not have a core goal of achieving the country’s development. Therefore, the resolution called for the formation of a comprehensive plan for achieving financial and economic development, ensuring debt repayment sustainability, and disclosing cost estimates and strategic frameworks for developmental initiatives.
