President Dr Mohamed Muizzu has ratified the First Amendment to the Fiscal Responsibility Act today, bringing into force the requirement for a Fiscal Responsibility Charter to be formulated, approved, and published in the Government Gazette.

The amendment, passed by the Parliament on 1 December 2025, provides a transitional period of 24 months before measures arising from the Charter and feasibility studies for Public Sector Investment Programme (PSIP) projects become mandatory.

The Fiscal Responsibility Act, initially proposed by Huraa constituency MP Dr Anara Naeem, has also set a borrowing limit from the Central Bank at 2.5 per cent of the average revenue collected over the preceding three years, ensuring responsible fiscal management.

The legislation requires the Finance Minister to submit key fiscal documents, including the Charter, Budget Statement, Fiscal Strategy Statement, and Risk Statement, while the Auditor General will report on implementation for parliamentary review.

The current Fiscal Responsibility Act establishes a modernised framework for fiscal governance, promoting transparency, accountability, and sustainable growth.