The People’s Majlis has approved an amendment to the Fiscal Responsibility Act, extending the legally mandated deadline for drafting the Fiscal Responsibility Charter.

During Monday’s parliamentary sitting, the amendment was passed with 58 votes in favor and nine against. The bill was introduced by MP for Huraa constituency Dr. Anara Naeem, on behalf of the government, and had been reviewed by the Finance Committee.

Under the existing Fiscal Responsibility Act, particularly Article 39, the Fiscal Responsibility Charter must be drafted, approved and implemented by next Wednesday. Citing the need for more time, the government sought to postpone this deadline.

Dr. Anara proposed extending the period for drafting the first required charter from six months to 24 months. The amendment also grants a two-year timeframe for formulating the regulations that must be completed within six months of the Act’s commencement.

In addition to this, the bill removes the article establishing an 18-month period for a presidential term to begin.

The committee reported that it had consulted relevant institutions during its review. Input was obtained from the Maldives Monetary Authority (MMA), the Ministry of Finance and Planning, and the Auditor General’s Office.

The proposal to delay the drafting of the Fiscal Responsibility Charter, whose deadline was rapidly approaching, by two years was submitted last week.

The Fiscal Responsibility Act was ratified last December and came into force in June. Although the Act requires the charter to be drafted within six months of its commencement, the government has yet to finalize the necessary preparations.