Finance ministry issues new rule to secure judicial budget

The Ministry of Finance has formulated a new rule to ensure the financial independence of the judiciary.

The ministry said the rule was prepared under the vision of President Mohamed Muizzu to establish a clear framework for funding the justice sector.

The rule sets out procedures for the planning, allocation, management and reporting of funds allocated from the state budget to the judiciary. It has been formulated under the State Finance Regulations and in line with the State Finance Act.

Under the rule, specific standards will be introduced for budget preparation and implementation. Each year, the state budget approved by Parliament will include the funds required for the judiciary.

The rule requires that at the beginning of each year, not less than two per cent of the estimated state revenue be allocated to the judiciary. This does not include revenue allocated for specific purposes or revenue projected from new measures.

According to the rule, sectoral grant assistance to the judiciary will be received, maintained and spent through a special account opened with the Maldives Monetary Authority, as determined by the Ministry of Finance.

All transactions through this account must be carried out through the State Public Accounting System in accordance with state finance rules. The ministry said this would support financial control, recording of transactions and reconciliation with government accounts.

The rule also introduces requirements for medium-term budgeting. The Department of Judicial Administration is required to prepare a comprehensive annual budget and submit it to the Ministry of Finance before 30 September each year.

The budget must include projected revenue for the medium term. If a budget deficit is expected, a plan to raise the required funds must be included. In cases of deficit, expenditure must not exceed the projected revenue and bank balance.

Under the rule, the Chief Judicial Administrator will be responsible for formulating policies for raising funds and managing expenditure. The designated financial officer will be responsible for implementing the budget.

If expenditure is required outside the approved budget, a supplementary budget must be approved before the expense is incurred. The reasons and details must be submitted to the Ministry of Finance and made public.

For development projects, the rule states that Public Sector Investment Programme projects of the judiciary will be funded through sectoral grants. Additional state assistance may be provided subject to conditions and an agreement with the relevant government agency.

Details of any foreign assistance must also be submitted to the Ministry of Finance.

The rule provides that salaries and allowances will be paid in accordance with the Pay Commission standards, the State Pay Policy Act and the Employment Act. Temporary staff may be hired if funds are available.

The rule states that no subsidies will be provided to reduce the prices of goods and services. Where compensation is required, it will be paid from the judicial budget after a final court judgment.

To ensure transparency, monthly expenditure details must be made public before the end of each month. Expenditure reports must be submitted to the Ministry of Finance before the 15th of the following month.

Sectoral grants to the judiciary will be released monthly or quarterly, depending on the state’s cash flow.