The Parliament has passed the Fiscal Responsibility Bill and the Public Debt Bill, both of which were approved by a majority vote.

Funadhoo constituency Parliament Member Mohamed Mamdooh presented the Public Debt Bill, which mandates the establishment of a Debt Management Department within six months of the law’s enactment. This new department, initially proposed as a debt management office, will operate under the Ministry of Finance. The Public Accounts Committee recommended the name change during its review of the bill.

The newly formed department will assume all responsibilities currently handled by the Finance Ministry’s Debt Management Team. It will oversee public borrowing, manage existing debt, ensure transparent disclosure and reporting of debt information, and regulate sovereign guarantees for loans taken by local councils and state owned enterprises.

The Fiscal Responsibility Bill, introduced by Thulusdhoo constituency Parliament Member Ibrahim Naseem, seeks to replace the existing Accountability for Public Expenditure Act. It aims to establish a more sustainable and transparent system of fiscal norms.

Under the new law, the Finance Ministry must develop and publish in the Gazette a five year fiscal responsibility charter within six months of a presidential term commencing. This charter will align with clearly defined fiscal policy rules.