President Ibrahim Mohamed Solih has decided to disburse 100% of revenue from atoll shops into local councils. He announced the decision at the Viavathi Raajje conference being held in Ukulhas, Alifu Alifu Atoll.
Atoll shops were established with public shares to facilitate means to generate revenue to the atolls for development projects. However, before the current administration took office, atoll councils had not received any revenue from atoll shops since 2014.
Upon assuming office in 2018, the current administration began disbursing revenue from atoll shops to the respective atoll councils as part of efforts to financially empower local councils. As such, the administration had disbursed the atoll shop revenue from 2014 to 2017 to the atoll councils, before the COVID-19 pandemic forced a halt to the disbursement of revenue from subsequent years to the councils.
However, President Solih has revealed that atoll shop revenue from 2018 and 2019 will be disbursed to the local councils next week. He also noted that currently local councils receive 50% of the atoll shop revenue while the government receives the other 50% but that local councils will now receive 100% of the revenue.
Also at the conference, Minister of Finance Ibrahim Ameer said that amount local councils will receive as atoll shop revenue from 2018 has increased from USD1.1 million to USD2.2 million due to President Solih’s decision.
In December 2019, the finance ministry disbursed USD1.16 million as the atoll shop revenue from 2016 and USD1.33 million as revenue from 2017 to the respective atoll councils.