A new regulation governing financial matters related to the judiciary has been formulated, outlining how State budget allocations for the judicial sector are to be planned, allocated and implemented.

The Ministry of Finance and Planning stated that the regulation was developed in line with President Dr Mohamed Muizzu’s decision to strengthen the financial independence of the judiciary. The rule establishes a sector-specific framework for the planning, allocation, management and reporting of State budgetary resources allocated to the justice sector.

The regulation was formulated under the Public Finance Act and provides special arrangements for judicial functions while maintaining consistency with national public finance standards. One of its key provisions introduces specific standards for budgeting and budget implementation, including strengthened funding mechanisms and accountability requirements.

Under the new rule, funds required for the judiciary must be included in the State budget approved annually by Parliament. It further stipulates that at the beginning of each financial year, no less than two per cent of the State’s estimated revenue must be allocated to the judiciary. This allocation excludes revenues earmarked for specific purposes and projected income from new revenue-enhancement measures.

To strengthen financial management, the regulation requires judicial sector grant assistance to be received, managed and disbursed through a special account opened with the Maldives Monetary Authority, as determined by the Ministry of Finance. All transactions from this account must be carried out through the Public Accounts System in accordance with the Public Finance Act.

The regulation also introduces medium-term budgeting requirements. The Department of Judicial Administration is required to prepare and submit the judiciary’s annual budget to the Ministry of Finance by 30 September each year. The submission must include medium-term revenue projections and, where a deficit is anticipated, a plan outlining measures to address the shortfall.

In terms of budget execution, the Chief Judicial Administrator is designated as responsible for fundraising for projects and for developing expenditure management policies, while an accountable officer will be responsible for implementing the approved budget. Any expenditure outside the allocated budget will require approval of a supplementary budget before funds are spent, with details and justifications submitted to the Ministry of Finance and made public.

For development projects, the regulation states that activities under the Public Sector Investment Programme relating to the judiciary will be financed through sectoral grant assistance. Additional State funding may be provided under specific conditions, subject to an agreement between the relevant Government agency and the Department of Judicial Administration, with details of any external assistance reported to the Ministry of Finance.

The rule further stipulates that salaries and benefits of judicial employees must comply with Pay Commission standards, the National Pay Policy Act and the Employment Act. Temporary staff may be hired within these frameworks once budget availability is confirmed by the accountable officer. It also requires essential monthly expenses, such as rent and utilities, to be prioritised before committing to additional expenditure.

In addition, the regulation states that subsidies or assistance to reduce the prices of goods and services will not be provided to address financial constraints. Any compensation ordered by a court must be paid from the judiciary’s budget following a final verdict.

To enhance transparency, the regulation mandates the publication of details of the judiciary’s monthly expenditure for the previous month before the end of the current month. A corresponding expenditure report must also be submitted to the Ministry of Finance by the 15th of the following month. Sectoral grants to the judiciary will be disbursed on a monthly or quarterly basis, depending on the State’s cash flow situation.