Overdrafts will be limited to the standard stipulated in the law from next year, Finance Minister Ibrahim Ameer said today.
Presenting the budget for next year in Parliament, Ameer said part of the MVR 4.4 billion overdraft facility provided by the MMA has been securitized twice and the limit has been reduced this year.
"It is possible to bring the overdraft limit to the standard set by the law from next year. But that can only be done by raising the money to finance the budget,” he said.
Ameer said the government would have to prepare for the planned financing inflows to finance the budget.
Under the Public Expenditure Accountability Act, the central bank, the MMA, limits the amount of debt it can borrow from the government.
However, the Parliament passed the suspension of some provisions of the Public Expenditure Accountability Act in April 2020. The suspension of some provisions of the Act was later extended. The extension requested by the government will expire by the end of this year.
President-elect Dr. Mohamed Muizzu has criticized the government for printing money during the campaign. This government has printed MVR 8 billion during this term, he said earlier.
Muizzu said his first priority after coming to power would be to revive Maldives' foreign policy and economic abyss. He said he would appeal to the Parliament to repeal the suspended provision to allow the printing of money but he will not print more.