President Dr Mohamed Muizzu has announced that Women’s Development Committees (WDCs) budgets will be doubled, while revisions to the fiscal formula for council block grants will also be introduced in the 2026 budget.

In a statement on X, the President stated that the proportion of council budgets allocated to WDCs will rise from five per cent to ten per cent. He also stated that Ramadan allowances for WDC members will in future be drawn from council budgets rather than committee budgets; a change aimed at empowering the committees and improving their operational capacity.

The decision builds on reforms introduced earlier this year. In February 2025, President Dr Muizzu ratified the 14th Amendment to the Decentralisation Act, which had been passed during the first parliamentary session of the current term. The amendment sought to address persistent funding issues by establishing structured procedures for the distribution of Government grants. Councils were required to allocate five per cent of such grants to WDCs, with clear guidelines on how the funds should be managed. The forthcoming budget will now reflect the decision to double this allocation.

That reform also established Ramadan allowances for WDC members. Under the provision, any member not already entitled under other legislation would receive MVR 3,000 ahead of each Ramadan.

Alongside these measures, the President announced adjustments to the fiscal formula used to distribute financial assistance to local councils. At present, general financial support is provided through block grants calculated on the basis of population size. This has meant that islands with smaller populations receive less financial support, even when their larger land areas require equivalent levels of municipal services.

To address these disparities, the fiscal formula will be revised to account for island size in addition to population. The President confirmed that these changes will be included in the budget submission for 2026.