The Parliament has accepted and passed the Public Debt Bill and the Fiscal Responsibility Bill to the Public Accounts Committee for further consideration. Both bills were approved with 78 votes in favor.
The Public Debt Bill, proposed by Parliamentarian of Funadhoo constituency Mohamed Mamdhooh aims to establish a dedicated Debt Management Office. Once the bill is enacted, this new office will be responsible for managing the nation's public debt. The Debt Management Office is to be established within six months of the bill's passage into law.
Under the bill, the responsibilities of the Debt Management Department of the Ministry of Finance will be transferred to this new office. The bill outlines regulations for public debt management, including rules for debt disclosure, reporting, and sovereign guarantees for debts incurred by councils and government-owned companies.
The Fiscal Responsibility Bill, proposed by Parliamentarian of Thulusdhoo constituency Ibrahim Naseem seeks to replace the Accountability for Public Expenditure Act with a new system of fiscal rules designed to ensure that public finances are managed in a sustainable, transparent, and accountable manner.
The bill introduces measures for the state’s fiscal policy and mandates the finance minister to formulate and publish a five-year Fiscal Responsibility Charter in the gazette within six months of each presidential term. This charter must be based on established fiscal policy rules and aims to ensure that fiscal practices are both sustainable and transparent.
The Public Accounts Committee will review the two bills and prepare them for further legislative processes.