Friday
5th Dec 2025
Dhivehi Edition
Photo: Male' City Council.
President Dr. Mohamed Muizzu has announced a decision to revise the fiscal formula for block grants provided to local councils, taking into account the size of the island in addition to its population.
In a social media post, the President highlighted that under Article 79 of the Decentralization Act, the current formula provides smaller block grants to islands with low populations. However, many such islands have large land areas, which require significant municipal work despite their smaller populations.
To address this, the President confirmed that the revised formula will be included in the 2026 state budget. This change is aimed at ensuring fairer allocation of funds for municipal services and development projects.
At present, municipal services such as cleaning and maintenance are largely carried out by contract employees. The government stated that the new formula will help councils with large territories manage resources more effectively.