Democrats criticises grant cut to councils in 2025

The Democrats on Saturday raised concerns about the allocation of block grants to councils in the government's proposed budget for next year, claiming it violates the Decentralisation Act.

The 2025 budget totals MVR 56.6 billion, with MVR 1.4 billion set aside for block grants to councils, which the Democrats argue is insufficient.

In a statement released, the Democrats highlighted the provisions of the Decentralisation Act, which mandates that at least 5% of total state revenue be allocated to councils for the delivery of rural services. The party condemned what it described as a violation of this legal requirement.

The statement referred to the constitution, emphasising that all government powers originate from the people and must remain with the people. It cited Chapter VIII, which establishes the governance of the Maldives on a decentralised basis and underscores the state’s obligation to uphold and promote this principle through democratic governance.

The Democrats asserted that the duty to promote and empower decentralisation is a constitutional and legal responsibility, not subject to the discretion of any minister, leader, or institution. The statement stressed that the government and Parliament are bound by law to allocate specific proportions of the budget to councils and cannot do otherwise.

The Democrats labeled the reduced allocation as illegal and called on the government to adhere to the legal framework.

Concerns about the reduced block grants have also been expressed by the Maldivian Democratic Party (MDP) and several councillors. They noted that the previous year’s budget, passed by the 19th parliament, allocated MVR 2.2 billion in block grants to councils.