The Government of Maldives has allocated USD 103.586 million for local councils from State Budget 2020. The government has proposed a budget of over USD 2.4 billion for 2020.
The State Budget 2020 widely focuses on empowering the local councils to pave way for a better decentralised system. In the state budget 2020, USD 103.586 million is allocated as block grants for local councils which is a huge increment compared to the USD 42.470 million allocated for local councils this year.
Submitting the proposed budget, Minister of Finance Ibrahim Ameer said when grants are given to the councils, the total income of the councils will increase which will pave way for the councils to initiate minor developmental projects for the respective islands.
The minister said the block grant will further assist in serving the people closely and efficiently. He noted the grant for the councils comprises of 5% domestic revenue and 40% of the amount received from lease of lands, islands, lagoons and reefs. Meanwhile, the fee from the municipal services will also be given to the councils to be counted as income.
The parliament has now forwarded the proposed State Budget for 2020 to the budget committee for reviewing.