Parliament approves MVR 4.2 Billion as emergency funds

The Parliament approves to provide 4.2 billion emergency funds for one-year fiscal limits.

This will allow the government to increase the withdrawal cash from its public bank accounts at the central bank which would ease the cash flow. The approval was given with 60 votes during the virtual parliament sitting. In a letter to the parliament earlier Minister Ameer said that the COVID-19 has stopped all income sources and need to find other sources of income to in order to manage the cash flow shortages. Minister Ameer in the letter said 4.2 billion was needed immediately to manage public services, health care and provide economic support for Maldivians over the next three months.

In his letter he asks parliament to ease articles 32 (a), (d) and (e) of financial responsibility act and point in out that the Maldives faces natural disasters defined under article 36 fiscal responsibility act. Due to the passing of this approval, the government would get more time to pay back the money taken from the Maldives Monetary Authority.

While some parliament members have agreed this is the best option. Other parliament members such as Shiyam of Naifaru consistency said printing more money will destroy the country economy. Further, more former fiance minister Munnawwaru Mohamed also raised his concerned over the following via Facebook.

In regards, these concerns Minister Ameen has said it would take time for the government to receive set funds agree by international organizations and for the time being, these fund approved by MMA would help to manage the cash flow. He noted that the set funds would be used to run PSIP projects and to pay civil services salary. He ensured that the set funds would not affect the economy in the long run.

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