Finance Minister to be empowered to manage Sovereign Development Fund

The Parliament has begun debate on an amendment to the Public Finance Act, designed to empower the finance minister to propose to take on sovereign debt or issue sovereign guarantee.

The bill was submitted to the Parliament on behalf of the government by South Fuvahmulah MP Mohamed Mumthaz.

The bills states that the finance minister should be responsible for the management of the Loans and Capital Works Fund, Advance Fund, Consolidated Revenue Fund, Sovereign Development Fund, and Trust Fund.

The bill states that spending and investment decisions on funds in the Sovereign Development Fund will be made by the president, under the advisement of the finance minister.

It also states that a custodial account must be opened with the Maldives Monetary Authority as the Sovereign Development Fund, in order to invest state funds in a sustainable manner, service debt, and increase revenue.

Several parliamentarians, including those from MDP and the opposition, criticized the bill during the debate.