Local Government Authority (LGA) has revealed handing over projects to be conducted by the local councils has been delayed as Ministry of Finance is reviewing the budget for Public Sector Investment Programmes (PSIP) amid the COVID-19 pandemic.
All projects under USD 324,500 conducted as part of the PSIP fall under local councils as sectoral grants following the amendments to the Decentralisation Act. LGA revealed efforts are underway to identify the projects the councils are keen on conducting in the islands. LGA said the paperwork to hand over projects to the councils are underway although the finance ministry is revising PSIP budget.
Furthermore, the authority noted seperate online meetings will be arranged with the councils to create awareness on conducting projects in line with the relevant regulations. LGA also revealed some projects the councils have expressed interest to undertake include construction and maintenance of markets and installation of street lights.
The amendments brought to the Decentralisation Act seek to financially empower the councils and increase the revenue generated from the islands. Further, councils will also receive 40% of the revenue generated from leasing land, islands and lagoons and 100% of the revenue generated from utilising land and other resources in the direct jurisdiction of the council.