President raises concern over unspent council grants

President Mohamed Muizzu has expressed concern that a significant portion of annual budget grants allocated to local councils remains unused.

Speaking in B. Eydhafushi on Monday evening during his tour of Baa Atoll, the President said the budget allocates substantial grants to councils each year for municipal services, but a large share of these funds is left in council accounts.

“This money is given to the councils to provide municipal services. It must be spent responsibly to deliver these services to the people,” he said.

Providing figures, President Muizzu said MVR 2.2 billion was allocated to councils last year, but MVR 1.4 billion remained unspent at year-end. He added that this year’s spending trend is similar.

He criticised councils for undertaking overseas trips to countries with systems unrelated to the Maldives in the name of gaining experience, instead of investing the funds in municipal work.

“It is not possible to keep the money unused once the budget is approved. They are not investing it. I leave this matter for the people and the councils to reflect on,” he said.

The President noted that his administration began with high debt levels and economic challenges. In the first year, he said, the budget was passed by a parliamentary majority from the opposition Maldives Democratic Party (MDP) without including his projects. He stated that the situation has now changed and that economic conditions have been arranged to move forward.

President Muizzu said he is confident that projects initiated this year and next year will be completed.

At Monday’s ceremony in Eydhafushi, the Road Development Corporation (RDC) was awarded the contract for the new Baa Atoll Hospital building, and an agreement was signed with the Maldives Transport and Contracting Company (MTCC) to construct a National University campus. The President also pledged to begin the 1,000 housing unit project this year.

He outlined plans to make certain services available at island and provincial levels to reduce the need to travel to Malé. These include:

The President called on councils to work with a national perspective, regardless of political differences.