Maldives Monetary Authority Governor Ali Hashim has stated that the government earnings earmarked for 2021 will be insufficient to cover its recurrent expenses. Speaking at the parliament’s Budget Evaluation Committee, the central bank Governor Ali Hashim advised the government to cut back on its expenses.
At the Budget Evaluation Committee meeting today, Governor Ali Hashim further stated that the budget scheduled for the PSIP projects were overwhelmingly through prospective foreign aid. He advised the committee not to initiate the PSIP projects until the state is able to secure the funds for the projects citing the ill effects of initiating and halting projects mid-way which could further lower the credit rating issued to the Government of Maldives.
Governor Ali Hashim’s comments on the subject comes at a time when world renowned credit rating agency Fitch Ratings has issued a CCC rating to both the government of Maldives and its SOE Hulhumale Development Corporation (HDC). Governor Ali Hashim admitted that the CCC rating will prove itself an obstacle in finding foreign investors and lenders to the Maldives.