The Minister of Cities, Local Government and Public Works, Adam Shareef Umar, has stated that President Dr Mohamed Muizzu is putting local council proposal into practice in order to strengthen the decentralisation system.

Since assuming office, the President has been travelling across the islands to meet council representatives, listen to the difficulties they face and identify the measures the Government can take to address them.

One such measure, announced yesterday, was a revision of the criteria for awarding state grants to councils. The aim is to increase council revenue and provide fairer distribution of resources.

At present, councils receive financial support through block grants, which are calculated on the basis of population size. This has left islands with small populations but large land areas at a disadvantage, as they receive less support despite higher costs for municipal services.

To resolve these disparities, the President confirmed that the fiscal formula will be revised to take island size into account alongside population. These changes will be reflected in the Government’s 2026 budget submission.

The President also announced that the proportion of council budgets allocated to Women’s Development Committees (WDCs) will increase from five per cent to ten per cent. In addition, Ramadan allowances for WDC members will in future be drawn directly from council budgets rather than committee budgets.

Commenting on the announcement in a post on X, Minister Adam Shareef said the decision to calculate council grants based on island size was evidence that the President is giving practical form to the proposals made by councils during his visits.

The Minister added that the decentralisation system could only be strengthened if councils were financially empowered and provided with sustainable sources of income. He said that the public wanted councils with the authority and resources to serve them effectively.

Under the current decentralisation framework, island municipal services are provided by councils. However, in large islands with small populations, the cost of maintaining land and delivering services is particularly high. With the revised policy, councils are expected to find it easier to provide such services equitably.

Since taking office, the Administration has also worked to expand the role of councils by including uninhabited islands within their jurisdiction and creating opportunities for them to carry out economic activities.