National debt up by 23 billion in five years

Ministry of Finance and Treasury has said that the national debt has gone up by MVR 23 billion in the five years of the President, Abdulla Yameen Abdul Gayoom’s government.  

Presenting the annual budget of MVR 29.6 billion for the year 2019, Finance Minister, Ahmed Munawar said that the total national debt now is MVR 48.6 billion. He said that the debt was at MVR 25.6 billion when President Yameen’s reign began and a total of MVR 23 billion in debt has been added since then.  

The Finance Minister said that the cause of the national debt increase was due to the funding of development projects that were completed and are ongoing.  

Minister Munawar said that if the development projects are executed according to the plan, the state income would be increased and will become capable of repaying the debts.  

Indicating to the measures taken by the government of President Yameen to ensure that the debts will be paid, Minister Munawar said that a state reserve fund by the name of Sovereign Development Fund was established by the President and by the end of the year, USD 98 million (MVR 1.5 billion) will be saved in that reserve.  

Finance Minister said that increasing the funds to that reserve have been discussed with the MMA and investments have been made and MVR 2.1 billion will be spent this year to repay the debt.  

The Minister said that MVR 25 billion has been spent in development projects with an average of 14 projects per atoll, per year. The projects spent on from the state budget were targeted in areas to increase the GDP.  

At the parliament today, he repeatedly asked that the development projects be continued.