President Muizzu Ratifies Fiscal Responsibility Charter Amendment

President Dr. Mohamed Muizzu has officially ratified the First Amendment to the Fiscal Responsibility Act, establishing a framework for a new Fiscal Responsibility Charter. The amendment, passed by Parliament on December 1, 2025, took effect immediately upon publication in the Government Gazette. The legislation mandates that the government must formulate, approve, and publish a Fiscal Responsibility Charter within 24 months of the Act coming into force. This Charter will outline long-term fiscal policy objectives and principles for responsible economic management. During this two-year transitional period, the implementation of measures arising from the Charter will not be mandatory. Additionally, the requirement to conduct feasibility studies before including Public Sector Investment Programme (PSIP) projects in the State Budget will be temporarily suspended. The amendment represents a significant step in strengthening the Maldives' fiscal governance framework. The Fiscal Responsibility Charter, once developed, is expected to provide clearer guidelines for public financial management and ensure greater transparency in government spending decisions. This legislative change comes as the Maldives continues to navigate economic challenges and seeks to establish more robust financial oversight mechanisms. The 24-month timeline allows the government adequate preparation time to develop comprehensive fiscal policies while maintaining flexibility during the transition period.