The Ministry of Finance and Public Enterprises has released more than USD 64.85 million in block grants to councils so far this year.
This year’s budget allocates a record USD 162.13 million for councils, the highest in the country’s history. In 2023, USD 136.19 million was allocated, with an additional USD 520,000 disbursed, while in 2024, a total of USD 142.67 million was disbursed to councils.
According to statistics released by the Finance Ministry, council grants have increased by 45.7 percent compared to the same period last year, when USD 46.58 million was disbursed.
Since 2020, block grants have been distributed using a fiscal formula based on state revenue. City councils receive the largest share of funding, with the Male’ City Council receiving the biggest allocation. The government plans to revise the funding formula so that allocations are based on both land size and population. The changes are aimed at strengthening local councils financially and supporting development projects.
While newly elected councils have now been sworn in, the abolition of atoll councils is expected to increase spending on island and city councils.
Meanwhile, the National Pay Commission has reviewed and increased allowances for Women’s Development Committee (WDC) members.
Under the revised structure, city WDC presidents will receive USD 1,297 per month, increasing from USD 454 pre iously. Island WDC presidents will receive USD 971 per month, up from USD 389.
Allowances for vice-presidents and members of both city and island WDCs have also been increased. City WDC vice-presidents will receive USD 454, up from USD 389, while island vice-presidents will receive USD 389, an increase from USD 324. City WDC members will receive USD 389, compared to USD 324 before, while island members will receive USD 324, up from USD 259.
This year, the share of council budgets allocated to WDCs was doubled from 5 percent to 10 percent. Ramadan allowances for committee members are now being paid from council budgets instead of WDC budgets.
The government said the changes were introduced to further empower WDCs.