So far this year, USD 81.06 million has been disbursed to local councils in block grants, according to statistics from the Ministry of Finance and Public Enterprises. Marking a 16.8 per cent increase from the USD 69.39 million allocated during the corresponding timeframe last year, details were published in the latest Weekly Fiscal Development Report.
The current fiscal year features the largest budgeted block grant for local councils in national history, with allocations set at USD 160.18 million. By comparison, USD 136.19 million was initially budgeted in 2023, though final expenditures exceeded that figure by USD 518,806.74, and USD 142.67 million was disbursed to councils the year prior.
City councils secure the most substantial share of this institutional funding, with the Malé City Council receiving the largest individual budget allocation of any local government body. Funding has been distributed as block grants under a structured fiscal formula based on state revenue since 2020.
Major revisions to the financial assistance system are forthcoming, the administration recently announced. The proportional share of grants provided to island and city councils will increase following the abolition of atoll councils. Future funding will be distributed based on the physical land area of an island, shifting away from a policy that relied solely on population size. These adjustments are intended to expand overall financial capacity and reinforce local development projects, the administration maintains.