Minister of Cities, Local Government and Public Works Adam Shareef Umar has assured that the government will implement initiatives proposed by local councils.
In a statement on social media following the President’s decision to revise the fiscal formula for council budgets, Minister Adam Shareef said the change to allocate funds based on island size reflects President Dr. Mohamed Muizzu’s commitment to fulfilling requests made by councils during his visits to the islands.
“The decentralization system will be strengthened, and council services to citizens will improve when councils are financially empowered and sustainable revenue-generating ideas are developed. Councils must have the capacity to deliver the services people need,” he said.
Currently, under Article 79 of the Decentralization Act, smaller islands receive less funding as the fiscal formula primarily considers population size. However, the President announced last night that from 2026 onwards, island size will also be factored in when allocating block grants for municipal work.
The revised formula aims to ensure more equitable funding for islands with large land areas but smaller populations, enabling councils to better manage development and public services.