Government Releases USD 65 Million in Council Grants and Raises WDC Salaries

The Ministry of Finance and Public Enterprises has disbursed over USD 64.85 million in block grants to local councils so far this year, marking a significant increase in funding for regional governance. This surge represents a 45.7 percent increase compared to the same period last year, when USD 46.58 million was released. This year's budget features a record-breaking allocation of USD 162.13 million for councils, the highest in Maldivian history. This follows a steady upward trend from 2023, which saw USD 136.19 million allocated, and a total disbursement of USD 142.67 million in 2024. Since 2020, the government has distributed these block grants using a fiscal formula tied to state revenue. While the Male’ City Council currently receives the largest share, the government intends to revise this formula. Future allocations will be based on both population and land size, a move designed to provide more equitable financial support for development projects across various islands. As newly elected councils take office, the government anticipates a shift in spending patterns. The abolition of atoll councils is expected to redirect more funding directly toward individual island and city councils to enhance local service delivery. In a parallel move to empower women in local governance, the National Pay Commission has substantially increased allowances for Women’s Development Committee (WDC) members. City WDC presidents will now receive USD 1,297 per month, a sharp increase from the previous USD 454. Similarly, island WDC presidents will see their monthly pay rise from USD 389 to USD 971. Allowances for vice-presidents and members across both city and island committees have also been raised. To further support these committees, the government has doubled the share of council budgets allocated to WDCs from 5 percent to 10 percent. Additionally, Ramadan allowances for committee members are now funded directly from council budgets rather than from the WDCs' own limited resources.