Parliament removes its requirement to authorise government loans
01 Dec 2014, 4:00 PM
Parliament passed amendments to the Public Finance Act today reversing changes brought to the law in 2010 requiring parliamentary approval for obtaining loans, providing sovereign guarantees, and leasing or selling state assets.
During the final debate at today’s sitting of the People’s Majlis, opposition Maldivian Democratic Party (MDP) MP Ibrahim Mohamed Solih said he believed the government should have “the power and discretion” to obtain loans and conduct its programmes.
However, the MDP parliamentary group leader objected to scrapping a provision in the public finance law that prohibits expenditures in excess of funds allocated in the annual budget.
If Article 34(b) is abolished, Solih said the finance minister would not have to ensure that spending was in line with the budget approved by parliament.
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