President: Councils will receive block grant as legally mandated

President Dr. Mohamed Muizzu provided assurance on Saturday that councils will be allocated funding in the 2025 state budget as mandated under the Decentralization Act.

According to the Decentralization Act, the government must allocate an amount equivalent to 5 percent of the total projected revenue in each year’s state budget towards providing block grants to councils.

The government last week presented a budget of MVR 56.6 billion for next year, with a projected total revenue of MVR 39.8 billion.

However, the block grant allocation for councils was MVR 1.4 billion – much lower than it should be.

Addressing an event held in Hulhumale’ on Saturday afternoon to inaugurate a pet care facility, President Muizzu said reaffirmed his administration’s commitment to fulfilling pledges and getting things done through a decentralized system of governance.

He said that his administration had conducted multiple initiatives to empower councils as it nears one year in office.

“I went and met members of some 160 councils. In the past, council members would have to travel to Male’. But I went there, met with them, and took notes myself. I still have those notes with me,” he said.

President Muizzu said that he implements the requests made during the meetings through the relevant government ministers and institutions.

He said that working closely with the people through a decentralized system of government is one of his administration’s top priorities.

He also noted that his administration had been developing new offices for councils. He said that his administration plans to build over 120 office buildings for councils during the current term.

President Muizzu said that his administration has also facilitated ways for councils to generate income. He said that his administration will draft legislature so that a percentage of profits from local tourism activities go directly to councils.

“A 5 percent block grant is what is written in the law. All councils will get this 5 percent as mandated by law upon the passage of the budget. And we will be submitting legislature in the coming days to allocate a specific percentage in local tourism profits,” he said.

President Muizzu added that in the next two weeks, he will be announcing things that are legally mandated but have never been done for councils.

“There are cabinet-level discussions being held regarding this. Our words and actions are matching with respect to getting things done through councils by empowering councils through decentralization. It is the result of this that you are witnessing here today,” he said, referring to the pet care facility developed in the Farukolhufushi area of Hulhumale’ Phase II.

President Muizzu said that his administration had the option of awarding the project to another contractor, but decided to award it to the Male’ City Council as part of the administration’s efforts to empower councils.

The low budget allocated for block grants in the 2025 budget has sparked concern from several councils, as well opposition parties, including the Maldivian Democratic Party (MDP).