Government to release grant funds to councils quarterly

Finance minister Ibrahim Ameer on Monday said that the government plans to release funds allocated to councils from the state budget every three months. 

Block grants are currently issued to local councils once a month.

At the ongoing 'Viavathi Raajje' symposium in L. Gan island, some councillors who expressed concern over the financial situation have stated that they are facing difficulties due to the monthly disbursement of funds. They proposed to release funds every quarter.

After hearing the concerns of the councilors, President Ibrahim Mohamed Solih said he believes it will be easier for councils if the funds are released quarterly instead of monthly payments.

"I also believe that this is a good thing," the president said, requesting finance minister Ameer's view on the matter.

Ameer said that the money will be released quarterly from next year.

"As noted by the president, we will consider releasing quarterly payments when providing block grants. So far in 2019, it has been made easier. We faced many challenges in 2020 due to COVID-19," he said.

However, the finance minister raised concerns over the failure of some councils to upload expense reports to the government's central Via portal. Ameer warned that he would not release funds to councils that fail to provide expense reports. 

After the government announced the decision, the councillors who spoke to Atoll Times noted that this was an important decision and that it would make planning easier.