Former Finance Minister Ibrahim Ameer has voiced concerns regarding amendments made to the Public Expenditure Accountability Act by the government.
In a post on X (formerly Twitter), Ameer highlighted that during the MDP administration, the public bank overdraft limit was temporarily extended due to exceptional circumstances, including a significant natural disaster and an unprecedented economic slowdown in the Maldives' history.
Ameer expressed alarm that less than a year into President Dr. Mohamed Muizzu’s administration, the law governing public expenditure has been altered despite earlier promises. "One of the key assurances given by President Muizzu upon taking office was that the MMA [Maldives Monetary Authority] would not print money. Yet, this law has been amended to increase the public bank overdraft limit," he noted.
Ameer explained that the amendment raised the overdraft limit from 1% to 2.5% of the average income over the past three years, effectively increasing the MMA's borrowing capacity by approximately MVR 800 million per month.
While Ameer criticized the amendment, the government has defended the decision, arguing that the previous administration suspended the law and engaged in unlimited money printing. Officials claim the recent changes are intended to introduce stricter financial controls and prevent similar practices in the future.
In a post on X (formerly Twitter), Ameer highlighted that during the MDP administration, the public bank overdraft limit was temporarily extended due to exceptional circumstances, including a significant natural disaster and an unprecedented economic slowdown in the Maldives' history.
Ameer expressed alarm that less than a year into President Dr. Mohamed Muizzu’s administration, the law governing public expenditure has been altered despite earlier promises. "One of the key assurances given by President Muizzu upon taking office was that the MMA [Maldives Monetary Authority] would not print money. Yet, this law has been amended to increase the public bank overdraft limit," he noted.
Ameer explained that the amendment raised the overdraft limit from 1% to 2.5% of the average income over the past three years, effectively increasing the MMA's borrowing capacity by approximately MVR 800 million per month.
While Ameer criticized the amendment, the government has defended the decision, arguing that the previous administration suspended the law and engaged in unlimited money printing. Officials claim the recent changes are intended to introduce stricter financial controls and prevent similar practices in the future.
