President Abdulla Yameen has responded to the opposition’s criticism of the government’s reliance on aid and borrowed funds for development, saying that debt is an essential part of progress.
At an event held to commemorate the national youth day, President Yameen said he believes that the Maldives cannot acquire development without the aid of borrowed funds. Yameen said that the needs of the people can only be met this way.
The president said that the state cannot fund its various projects, from building housing units to developing airports, without accumulate debt first.
Said loans are acquired to further ensure adequate shelter for ‘future generations’ and to develop local companies and industries, President Yameen said.
“Every country in the world does it” he said.
The Finance Ministry’s records show that the state’s debt rose by MVR 15 billion in the past four years, and the estimated debt by the end of 2018 will be 43 billion.
Parliamentarians passed the government’s proposed budget of 27.9 billion on 22nd November, with votes 39 votes in favour.
