Nine Member Parliament Committee Formed To Probe Into Overdraft Extension Request By The Government

On Monday, a letter signed by the Minister of Finance Ibrahim Ameer was send to the Parliament requesting the extension of the period granted for a financial overdraft to cover the expenses of the government by a year citing that the country’s economy has still not recovered from the negative impacts of the Covid-19 pandemic.  

In yesterday’s sitting of the Parliament, it was decided that a temporary nine-member committee consisting of MPs from all political parties as well as independent lawmakers will be formed who will hold meetings and finalize a report on the matter at the earliest, whereas if green light is received from all political parties, a parliament sitting will be held to come to final decision on the request. The decision was come to by vote of 51 MPs. 

The committee consists of the following members:  
  - North Hithadhoo MP Mohamed Aslam 
  -  Hulhudhoo MP Ilyas Labeeb 
  -  Dhaandhoo MP Abdulla Yaugoob 
  - South Henveiru MP Hussain Shaheem 
  -  Thulusdhoo MP Ibrahim Naseem 
  -  Meeedhoo MP Ahmed Siyam Mohamed  
  -  Maamigili MP Qasim Ibrahim 
  -  Maavashu MP Ahmed Saeed 
  -  Alifushi MP Mohamed Rasheed 

Due to the financial crisis at the onset of the pandemic, the Parliament has granted approval to suspend some clauses of the Fiscal Responsibility Act for a year back in 26th April 2021 – meaning government would be able to obtain the funds from the central bank without any limits. In this regard, an overdraft of MVR 4.4 billion from the central bank was approved back then.  

If the requested extension is granted, the end date of the overdraft will be changed to 26th April 2022.