Official statistics from the Ministry of Finance and Planning have shown that USD 41.1 million has been disbursed to councils as block grants so far this year.
According to the Weekly Fiscal Development Report, the amount represents an 18 percent increase compared to USD 34.8 million during the same period last year.
The total amount allocated as council grants this year is USD 162.1 million, the largest allocation to date. In 2024, a budget of USD 142.7 million was allocated, while in 2023, USD 136.2 million was budgeted, although this was exceeded by USD 518,800.
From the block grant allocation, city councils receive the largest share of funding, with the Male’ City Council allocated the highest amount. Since 2022, councils have been allocated block grants under a fiscal formula based on state revenue.
The government has decided to reform the council funding system, including abolishing atoll councils and increasing funding shares for island and city councils. In the future, allocation rules will shift from population-based to include also consider land size, a change aimed at strengthening financial capacity of councils and support local development projects.