Former government printed money, says president

The former government’s economic policies were unsustainable, President Mohamed Nasheed claimed during his weekly radio address, explaining that expansionary budgets combined with a lack of revenue had forced the government to print money and raise inflation.

“While three to four years ago the budget stood around Rf7-8 billion, we suddenly saw an inflated Rf12 billion budget,” he said.

“The idea would have been to finance the budget through inflows from the 60 newly leased islands for resort development. Now we all know the state doesn’t get any revenue from those resorts.”

He unveiled plans to increase the government’s revenue by expanding the country’s tourism industry into the mid-market sector and upgrading the fisheries industry. This included plans to establish the country as a fish exporter, he said.