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Councils ordered not to release statements on subsidies

Local Government Authority (LGA) has ordered the councils not to release statements on the issue of subsidies.

A circular released by LGA stated that statements critical of Government decision was not part of Council mandates, adding that Councils do not have the legal grounds to do so.

"As the Councils are characteristic of a unitary state specified in the Constitution and challenging the Government's decisions in addition to scheduling the release of statements on the agendas contravenes the mandate of Councils," the circular said.

While LGA had issued this circular, some Councils had already issued statements against the Government's decision. Some Councils had also passed to issue subsidies from the Council budgets.

With the changes to the subsidies, a rice kilo selling for MVR 3.89 will now sell for MVR 7.96. A kilo of flour will sell for MVR 5.96, which used to sell for MVR 2.89. A kilo of sugar now sells for MR 8 from MVR 4. The Government will be depositing MVR 40 per month to individuals and MVR 240 for households worthy of subsidies.