President Dr. Mohamed Muizzu, on Tuesday, has ratified the first amendment to the National Fiscal Responsibility Act, extending the deadline to draft the fiscal responsibility charter from six months to two years.
The amendment was passed by Parliament during the 27th sitting of the third session held on Monday.
Under the amendment, a Fiscal Responsibility Charter must be drafted, approved, and published in the Government Gazette within 24 months of the Act taking effect. It also specifies that, during this period, implementing measures stemming from the Charter — as well as the requirement to carry out feasibility studies before adding Public Sector Investment Programme (PSIP) projects to the State Budget — will not be compulsory.
With the President’s ratification and its publication in the Government Gazette, the amendment has officially come into force.
Following the ratification, the fiscal responsibility charter would need to be formulated and published in Government Gazette by December 3rd, 2026.
The National Fiscal Responsibility Act aims to ensure all state fiscal operations are sustainable, transparent, and accountable, fostering fiscal discipline in line with legal and regulatory obligations.