President's Office has revealed the State Budget submitted to the parliament has an allocated budget of USD 103 million, offering each island, atoll and city council a budget of between USD 0.19-2.14 million.
Speaking on a programme aired on PSM News, Policy Secretary at President's Office Aminath Shauna said a physical formula is to be used to disburse the money to councils in efforts to empower the people. Shauna said the population, size of the island and the responsibilities of the councils will be considered in disbursing the payments.
The payments made to atoll councils will also depend on the distance of atoll capitals from other islands, and the distance between the atoll and the capital, Male' City. Shauna further said islands with a population of less than 500 people would be provided with a budget of USD 247,730, while populations of up to 1,000 people would be provided with a budget of USD 350,195.
An island with a population between 1,000-2,000 people will be provided with a budget of USD 511,326. She further said islands with a population between 2,000-5,000 people would be given USD 862,516, while populations of more than 5,000 would be entitled for a budget of USD 2.14 million.
The policy secretary said some islands get a 400% increment compared to the current budget under the new policy, adding the budget allocated to the councils would empower them and allow councillors to carry their mandated responsibilities. She said the administration expects the councils to make the best use of the opportunity and the budget to fulfil the needs and services the people have yearned for a long period. She said the councils would be permitted to conduct businesses with the new amendments to the Decentralisation Act allowing islands to generate more income.
The amendments proposed to the Decentralisation Act grants councils 5% of domestic revenues and 40 percent of the amount received from lease of lands, islands, lagoons and reefs. Meanwhile the fee from Municipal services will also be given as income for council.