Falah challenges economic experts: Claims utilizing pension funds does not constitute money printing

Ibrahim Falah, the Member of Parliament for the Inguraidhoo constituency and Parliamentary Group Leader of the People's National Congress (PNC), has stated that utilizing funds from the pension fund or bank savings accounts does not constitute the printing of money.

Speaking at Tuesday's parliamentary sitting, Falah stated that utilizing funds held as savings in banks cannot be classified as printing money. He noted that banks routinely use deposits from wealthy individuals for activities such as issuing loans. Falah further asserted that the opposition is intentionally misleading the public by suggesting that issuing loans from savings accounts is equivalent to printing money.

Falah stated that the opposition is leveling serious allegations against the government regarding the alleged printing of 2.5 billion Rufiyaa from the Pension Fund because this administration refuses to engage in currency printing. He further noted that there is no logical basis to characterize the utilization of funds from any institution's savings as the printing of money.

Since this administration has ceased printing money, claims are now being made that 2.5 billion rufiyaa has been printed from the Pension Fund. If that were the case, then utilizing funds kept in people's bank savings would also have to be considered printing money. Utilizing funds held in any institution's savings cannot be classified as printing money.

Ibrahim Falah

Falah stated that while the state budget stood at approximately 9 to 10 billion rufiyaa at the end of former President Maumoon’s term, it has now surged to over 50 billion rufiyaa. However, with annual revenue only reaching approximately 34 to 35 billion rufiyaa, this deficit has resulted in the state accumulating between 12 billion and 15 billion rufiyaa in debt annually, driving the total national debt to between 160 billion and 180 billion rufiyaa.

Despite Falah's remarks, economic experts and industry professionals continue to voice serious concerns regarding the government's decision. Critics have characterized the administration's actions as a threat to the future of the citizenry and the integrity of the national financial system. Expressing deep apprehension over the government's economic policies, they are calling for an immediate reversal of these measures.

Several employees of the Pension Office have resigned in connection with this issue, citing the government's inconsistent economic policies as the reason for their departure. Public criticism has also mounted against President Muizzu, with many noting that despite coming to power on a pledge to stop printing money, current actions appear to contradict that promise.