President commits to full grants to council at budget approval
Both the MDP and some councillors have voiced dissatisfaction with the reduced block grants compared to last year’s budget
President Mohamed Muizzu on Saturday assured that block grants to councils, as mandated by the Decentralisation Act, will be included in the government’s budget for next year once it is approved by parliament.
Speaking at an official event, President Muizzu emphasised the government’s commitment to supporting and empowering councils.
The proposed 2025 budget amounts to MVR 56.6 billion, with MVR 1.4 billion allocated for block grants to councils. The Decentralisation Act, however, stipulates that councils should receive 5 percent of the state budget, which would amount to approximately MVR 2.8 billion.
President Muizzu stated that the government would ensure councils receive financial empowerment in accordance with the law, including the allocation of block grants. He highlighted that the legislation specifies a 5 percent allocation to councils once the budget is enacted.
He also pointed out that several provisions outlined in the Decentralisation Act had not been fully implemented by the previous administration. President Muizzu pledged that his government would fulfil these legal obligations, adding that discussions on transferring additional responsibilities to councils are underway at the cabinet level.
During his remarks, President Muizzu referenced an instance from his tenure as Male's mayor, when land designated for a dog shelter by the previous council was confiscated. He noted that the current government had returned the land to the existing council to establish the facility, highlighting efforts to enable councils by providing resources and cooperation.
Despite the assurances, concerns persist regarding the budgeted block grants. The ruling Progressive National Congress (PNC) retains a majority in the city council, although Male mayor is Adam Azim of the opposition Maldivian Democratic Party (MDP).
Both the MDP and some councillors have voiced dissatisfaction with the reduced block grants compared to last year’s budget, which allocated MVR 2.2 billion. The Democrats also released a statement on Saturday expressing similar concerns.
