President announces doubling of WDC budget allocation and review of block grant fiscal formula in 2026 Budget

President Dr Mohamed Muizzu has announced two key measures to strengthen Women’s Development Committees (WDCs) and to review the fiscal formula for block grants in preparation for the 2026 State Budget.
In a post on his official X account, the President stated that the Government will double the budget allocation for WDCs, raising it from five per cent to ten per cent from the 2026 Budget onwards. He noted that this measure is intended to further enhance the role and capacity of WDCs.
The President further announced that, beginning next year, the Ramadan allowance for WDC members will be provided through council budgets, rather than being drawn from the committees’ own budgets. The initiative to provide Ramadan allowances to WDC members was first introduced last year under this Administration.
In addition, the President revealed that the fiscal formula used to allocate the Government’s general block grants to councils will be revised in accordance with Section 79 of the Decentralisation Act (Act No. 07/2010). He explained that the revised formula would take into account island size, highlighting that the current formula has disadvantaged certain councils. This change will also be proposed as part of the 2026 Budget.
The President proposed revising the fiscal formula for block grants to councils, taking into account that while some islands have smaller populations, the scale of municipal services remains significant due to their size.
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