Maldives Monetary Authority (MMA) has commended Ministry of Finance’s regulation that requires presidential authorization to exceed or re-allocate the national budget allocations.
According to the budget allocation regulations released by the Ministry, the budgets of any governmental offices or ministries can only be increased by 5% and any amount beyond that requires authorization from the president.
The central bank stated that they have been recommending the parliament to enact a law on fiscal operations for the past two years. As recurrent expenses of the government is being underestimated while revenue is overestimated, the deficit of the state keeps increasing year after year, said MMA.
The bank welcomed the ministry’s policies, noting that the change would contribute in stabilizing and streamlining the state’s finances.