Financial experts have said that the Sovereign Development Fund (SDF) will have to be used if the government cannot raise the money needed for the budget within the next month.
Experts who spoke to Adhadhu said the SDF may have to be used when there is no way to meet the expenses as the state's dollar reserves continue to deplete.
The Maldives Monetary Authority (MMA) recently sent a letter to the Ministry of Finance, warning that the usable dollar reserves may run out before the end of August.
According to the latest data, the amount of usable reserves fell to USD 43 million in July. This is less than the amount needed for a month's essential imports.
Two experts who spoke to Adhadhu on condition of anonymity said the only option will be to use the SDF if this situation continues and dollar reserves do not increase.
"The only option left will be using the money from the SDF. I don't see us getting dollars any other way quickly," said an expert in the financial sector who is also a former government official.
A second expert supported the opinion and said this situation was caused by the fact that the approved budget was not implemented accordingly.
He noted that finance was not obtained in accordance with the financing plan. He also highlighted the delays in implementing austerity measures and spending on repaying loans which were not budgeted.
“By spending on things that were not budgeted and by not implementing austerity measures on the planned date, that is how we have fallen into this situation," he stated.
According to the latest figures provided by the government, there is USD 65 million in the SDF. That is barely enough for the imports of one month and other expenses.
Finance Minister Dr. Mohamed Shafeeq did not respond to calls when Adhadhu contacted to question whether there was a situation where the government may need to use the SDF.
SDF is a fund separate from the public bank account. The purpose of the fund is to invest the state's money in a sustainable manner, debt repayment and increasing public revenue.
