The minister of finance has informed inorder to maintain essential health care for the country. The government needs 4.2 Billion Maldivian Rufiyaa cashflow for upcoming three months.
A letter sent by the minister to parliament he has asked the parliament to vote on an one-year extension on borrowing based on Article 31 and Article 32.
According to article 31 state the government can only borrow from the central bank with a repayment policy of 91 days and cash borrowing must be limited to not more than one percent of state income based on previous three years revenue.
But in reference to Article 32 the government only borrow money from central bank only for national development projects or to procure resources to boost productivity. The article also states that the government cannot borrow money to repay debts.
The finance minister has stated the letter is in compliance with financial limit set according to article 32 which is known as financial responsibility. The minister has noted currently it is impossible to follow the act given the circumstances.
The minister noted revenues are going low and need parliament assistance to amend the act to help the current situation.