Finance Ministry Now Oversees Local Government Following Dissolution of Cities Ministry

The Ministry of Finance and Public Enterprises has officially assumed responsibility for the portfolio previously held by the Ministry of Cities, Local Government and Public Works. This shift follows a Cabinet restructuring by President Dr Mohamed Muizzu, aimed at streamlining government functions by aligning related responsibilities. The move sparked questions regarding which government official is now accountable for the Maldives' decentralization system and the oversight of local councils. President Muizzu clarified that the Finance Minister is now the primary point of contact and the official accountable to the Parliament for all matters concerning local governance. Under the current framework, the Local Government Authority (LGA) remains the statutory body tasked with the day-to-day administration of the decentralization system. While the Ministry of Cities was originally established in 2023 to enhance coordination between the central government and local councils, its mandates have now been absorbed into the Ministry of Finance. Consequently, all administrative requests and policy matters previously directed to the Cities Ministry must now be submitted to the Ministry of Finance and Public Enterprises. To ensure seamless oversight, President Muizzu has appointed Finance Minister Moosa Zameer as the President of the LGA. This appointment solidifies the Finance Minister's role as the bridge between the statutory authority and the legislative branch. The LGA has assured the public and local councils that the dissolution of the dedicated cities ministry does not create legal gaps. Following the 17th amendment to the Decentralization Act, services and assets previously managed by atoll councils have been legally transferred to the LGA. This allows the authority to maintain its operational capacity and continue regulating council work without interruption. By integrating these responsibilities, the government intends to leverage the Finance Ministry's broad oversight to better implement policies for governing administrative regions under decentralized principles.