The parliament has voted to extend the MVR 4 billion overdraft taken by the government from the Central Bank MMA for another year.
In a vote taken to extend the overdraft period by another year, 47 members had voted for the extension while 4 others voted against extending the overdraw period.
This vote came after a special committee established for the purpose of researching the government's request to extend the overdraw had said in its report to extend the overdraw period with a cap on the MVR 4 billion limits now in place.
The Fiscal Responsibility Act had banned limitless overdrawing from the MMA under Article 32, (a), (d), and (e) and the government had requested for a suspension of the act last year when it asked for an MVR 4 billion overdraw for a certain period.
The Finance Ministry had requested an extension on this period earlier this month as tomorrow the deadline for the overdraft is set to be completed.
In its letter to the parliament, the Ministry had said that the COVID-19 pandemic has left the economy shaken and had asked the parliament for an extension in order to keep the cash flow alive and the government running despite the economical challenges.
