President Muizzu Signs Fiscal Responsibility Amendment Into Law

President Dr Mohamed Muizzu has officially ratified the First Amendment to the Fiscal Responsibility Act, bringing the legislative changes into immediate effect following publication in the Government Gazette. The amendment was approved by Parliament during its December 1, 2025 session. This legislative update introduces a requirement for the formulation of a Fiscal Responsibility Charter within 24 months of the Act's implementation. During this two-year transitional period, the amendment provides flexibility by not mandating immediate implementation of Charter-derived measures. It also temporarily suspends the requirement for feasibility studies before including Public Sector Investment Programme (PSIP) projects in the State Budget. The Fiscal Responsibility Charter, once developed, will establish guidelines for government spending and fiscal management. The 24-month timeframe allows for comprehensive development of the charter while maintaining government operations during the transition period. This amendment represents a significant update to the Maldives' fiscal governance framework, balancing immediate operational needs with long-term financial responsibility goals. The changes take effect immediately following the President's ratification and official gazette publication.