President Muizzu: Block Grants to be Allocated by Land Size Instead of Population

MV+ News Desk | September 6, 2025
President meets HDh. Makunudhoo Island Council and WDC. | Photo: President’s office

President Dr Mohamed Muizzu has announced that government block grants to local councils will be distributed based on land size rather than population.

President Dr Mohamed Muizzu has announced that government block grants to local councils will be distributed based on land size rather than population.

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In a post on his official X account, Dr Muizzu explained that under the fiscal formula established in Section 79 of the Decentralisation of Local Bodies Act (Act No. 7/2010), block grants are currently allocated according to population figures. However, he argued that the existing system disadvantages councils in islands with extensive land but small populations, as their municipal responsibilities remain insufficiently funded.He added that the changes would be included in the government’s 2026 budget proposal.

The president also announced adjustments to the budget of Women’s Development Committees (WDCs). Their share of council budgets will be raised from five percent to 10 percent, with the revision to take effect from next year. In addition, Ramadan allowances for WDC members will be included in council budgets rather than being drawn from the committees’ own budget.

The announcement comes amid ongoing public debate on changes to the decentralisation framework. Recent amendments to the Decentralisation Act shifted several powers from local councils to central government institutions, sparking criticism from opposition parties, civil society groups and some island councils. Critics argue that the revisions undermine the principle of decentralised governance, while the administration maintains that the changes are necessary to improve efficiency and accountability.

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