It will take time to re-establish the destroyed monetary policies: Economic Minister

Economic Minister Ahmed Mohamed has said that it will take time to reestablish the monetary policies destroyed by the former government.

Minister Ahmed Mohamed said that the state expenditure should be based on the state income. He said that both should be balanced.

He said that the former government’s state budget for this year was passed without considering these facts. He said that the end consequences of this inconsiderate decisions is that the people want see the change they want for the dollar exchange rate by the end of this year.

“I am not saying that there won’t be good changes. But what I am saying is that these changes might not be the changes expected by the people,” he said.

In view of the extravagant expenditure spend on the SAARC Summit, Minister Ahmed Mohamed noted that more than 30 bills are still unpaid and pending. He said that the most worrisome issue is that no supporting documents or documents of agreements are to be seen with these bills.

The Minister also criticized the way the tax system was established by the former government. He said that it is one of the main reasons for the hike in the price of goods and service. However, he said that it will be nearly impossible to make a change to the whole system now.

He said that time is short for the current administration, but the government will do whatever is in its capability to amend whatever policies necessary to end the economic crisis.

Meanwhile, according to some researchers, state debit per head when ex-President Mohamed Nasheed swore was MRF 4,500. And that it was MRF 65,000 when he resigned.