Finance Minister Moosa Zameer has requested that Parliament allocate additional funds from the contingency budget to fulfil the block grant requirements for local councils in the 2025 national budget. 

This request comes in response to concerns raised about the current allocation, which, under the proposed budget, fell short of the legal mandate.

The government’s MVR 56.6 billion budget, presented last week, designated MVR 1.4 billion in block grants for local councils, representing 2 percent of the total budget. However, the Decentralisation Act mandates that 5 percent of the annual budget should be allocated to councils. The discrepancy prompted feedback from councils and political parties, who emphasised the need to meet this legal standard.

During Wednesday’s parliamentary session, Minister Zameer assured members that the government would work to align the allocation with the Decentralisation Act’s requirements. The proposed adjustment will raise the block grant allocation to over MVR 2 billion, ensuring that local councils have the resources needed to support community development and decentralised governance in the coming year.