The Ministry of Finance has submitted a request to the parliament to end the suspension of Chapter 32, Articles (a), (d) and (e) of Act No: 7/2013 (Fiscal Responsibility Act) and restore the suspended articles.

On 26 April 2020, the Ministry of Finance submitted a request to the People’s Majlis seeking exemption some provisions of the Fiscal Responsibility Act due the Covid-19 global pandemic, a natural disaster as defined in Article 36 of the Act. The exemption was extended twice by the Parliament as the economic slowdown caused by the pandemic had not been overcome.

According to economic figures, the real GDP of the country had surpassed the pre-pandemic level in 2022. As such, the state revenue for 2022 was higher than the revenue for the year 2019.

Therefore, as there is no present situation as described in Article 36 of the Fiscal Responsibility Act, the Ministry of Finance has requested the Parliament to terminate the suspension of Chapter 32, Articles (a), (d) and (e) of the Act with effect from 01 January 2024.

The removal of the suspension of the provisions of the Fiscal Responsibility Act and restoring the full Act is an important goal included in the government’s ‘Hafuthaa 14’ roadmap.