Nasheed says MDP’s goal is to double public income, not raise raxes
According to Nasheed, revenues generated from projects financed through loans should be used to repay those loans.
Former President Mohamed Nasheed has said the Maldivian Democratic Party (MDP) aims to increase household incomes as part of its approach to addressing the country's debt obligations, arguing that economic growth rather than higher taxes should be the focus of policy.
Nasheed made the remarks during a meeting with MDP members in Sh. Kanditheemu on Tuesday as part of his campaign for the party's chairperson election.
Addressing concerns about public debt, Nasheed said foreign borrowing had contributed to the development of infrastructure and other assets in the Maldives. However, he argued that the challenge now lies in generating sufficient economic returns to meet repayment obligations.
According to Nasheed, revenues generated from projects financed through loans should be used to repay those loans. He said this has not happened to the extent required, as many citizens have not seen direct financial benefits from the projects.
Nasheed stated that infrastructure projects often take several years to generate returns, while loan repayment schedules begin much earlier, creating financial pressures.
He argued that the government's current approach to debt repayment relies on increasing taxes and fees paid by businesses and the public.
“My goal, and MDP's purpose, is to establish policies that double the income currently earned by Maldivian citizens and families,” Nasheed said.
“This doubling is essential because it is only through increasing income that we can service these loans. In other terms, this process is called expanding the tax base for the purpose of increasing tax revenues.”
Nasheed said he is contesting the MDP chairperson election to pursue policies aimed at increasing incomes and supporting economic activity.
As part of that effort, he proposed establishing a project department within the MDP that would work with local councils on development initiatives.
According to Nasheed, the department would assist councils in preparing project proposals, conducting feasibility studies and identifying economic opportunities tailored to individual islands.
He also claimed that limited government resources would make it difficult to provide additional support to councils after meeting debt repayment obligations.
Nasheed further criticised President Dr Mohamed Muizzu’s administration, arguing that it lacks the capacity to address the country's fiscal challenges.
“The only way the funds can be repaid is through your prosperity,” Nasheed told party members.
“We have set our destination. That destination is doubling income. In reality, the destination is preventing poverty.”
Nasheed is contesting the MDP chairperson election against South Galolhu MP Meekail Ahmed Naseem. The election is scheduled to be held on June 12.
