The government has decided to allocate MVR 1.7 billion to councils as free aid from the state budget next year.
Finance Minister Ibrahim Ameer announced the government's decision at the third session of the ongoing Viavathi Conference in L. Gan. The third session focuses on the financial empowerment of councils.
The government first decided to allocate block grants to councils in 2020. Although MVR 1.5 billion was allocated to be issued that year, the figure was later revised to MVR 550 million due to the COVID-19 pandemic.
Minister Ameer Monday said the government is allocating MVR 1.7 billion in grant aid to councils next year as part of the government's policy of increasing aid to councils year by year.
“The government intends to increase this figure in the future based on the revenue received by the state,” he said.
The minister acknowledged that the government receives complaints on the difference in amounts issued to different councils and said policies are currently being amended in order to resolve the issue. He added that he believes the state is already spending adequate amounts on all councils.
