The Maldivian state is indebted and does not earn enough revenue to be able to repay loans, former Vice President Dr. Abdulla Jihad said last night.
Jihad, an advisor to Jumhooree Party (JP) presidential candidate Qasim Ibrahim, said at a rally at the party's headquarters that the state does not earn enough US dollar revenue to repay USD 1 billion that will come due in 2026.
"USD 1 billion needs to be paid in 2026. Regardless of who wins the presidential election, USD 1 billion will have to be paid in 2026. The state's dollar income is close to USD 900 million. How can USD 1 billion be paid with an income of USD 900 million? And there would be other expenses that the state needs to make," Dr. Jihad said.
Dr. Jihad called the government "top heavy" and noted that spending has exceeded revenue every year over the past five years. The total budget deficit of the past five years is more than MVR 60 billion, he said.
"When I looked at the budget book, revenue this year is MVR 30 billion. Budget spending is MVR 42 billion. So this is an MVR 12 billion deficit budget. Then I looked at last year's spending...there was a deficit of MVR 14 billion. When I looked at all these years, the budget deficit of these past five years rises to MVR 62 billion," said Jihad, who was Vice President during former President Abdulla Yameen's administration.
Jihad said further in his speech at the rally that the public was anxious and indebted.
"Not just some people. Everyone from small and medium businesses is indebted. To say it in English, they're in a credit crunch," he said.
Dr. Jihad served as finance minister on three occasions in the cabinets of former President Yameen, former President Dr. Mohamed Waheed and former President Maumoon Abdul Gayoom. He also served as governor of the central bank.
Aside from JP leader Qasim, other candidates for the September 9 presidential election include President Ibrahim Mohamed Solih, Hulhudhoo MP Ilyas Labeeb from The Democrats formed by Speaker Mohamed Nasheed, and Mohamed Nazim from the Maldives National Party.
The main opposition Progressive Party of Maldives submitted the candidacy form of jailed former President Yameen on Tuesday morning.
