Majlis approves to extend overdraw period for a third time

The People’s Majlis has passed to extend the period the government is permitted to overdraw from public bank accounts, for a third time.

42 MPs voted to pass the extension period, with only two lawmakers voting against, during a poll held at the parliament session on Tuesday.

With this, the implementation of Article 32 (a), (d) and (e) of the Fiscal Responsibility Act has been delayed until 31 December 2023.

The period through with the state is authorized to overdraw from public bank accounts has been extended until April 2023.

Amendments were proposed to the initial committee report due to recommendations by the Speaker of Parliament, Mohamed Nasehed.

With a limitation of MVR four billion due to the unforeseen impacts on the economy revolving around the Covid-19 pandemic, the first overdraw extension was granted in 2020, it expired in April 2021 and the Finance Ministry’s request led to the People’s Majlis extending it to April 2022 once more.

However, an additional extension was sought, with which the parliament’s Public Accounts Committee made amends to key points highlighted by the ministry.

The committee decided to extend the period until December 2023, even though the ministry had requested to grant the extension until 26 April 2023.

Further, the committee decided to cut back the limit of MVR 3.5 billion proposed by the ministry, to MVR 2.5 billion.

The Majlis council general revealed that the parliament can only present recommendations and that the committee report deters the freedom given to the Maldives Monetary Authority (MMA), due to which committee chair MP for Kinbidhoo constituency Mohamed Nashiz proposed two more amendments.