One of the most talked about issues regarding President Yameen’s administration is the amount of foreign loans taken from other friendly nations for developmental projects. A famous professor also expressed his concerns regarding this issue. Their biggest concern being this may lead to a huge debt. However, President Yameen and his cabinet claim to be continually working to minimize the national debt. His administration is still paying off the debt inherited from the previous administration.
Without a doubt, the risk taken by President Yameen’s administration is greater than those from the previous administrations. This includes the loans taken to build the bridge between Male and Hulhumale, the new airport runway and huge housing development projects. We have already started seeing the result of these projects. Maldives has achieved a significant level of development within the past 4 years.
The question is whether we are digging ourselves into a deeper debt. This issue is constantly brought up by MDP and other opposition parties.
In response to this, it is important to compare the debt created by the current and previous administration. When the 2018 budget was passed, Minister of Finance Mohamed Munawwar has issued some important estimates. According to these, former President Mohamed Nasheed’s administration created a debt of MVR 24.5 billion within his 3 years of presidency. A debt of MVR 8.17 billion per year. During President Yameen’s administration, the debt increased by MVR 14.5 billion, MVR 3.63 billion per year.
From this comparison, it is abundantly clear that President Yameen, an economist, is competent at his position. Thus, the professor has failed to provide valid evidence for his claims. The loans borrowed from the government will result in a higher national income and in turn aid in the reduction of the national debt.