The government has decided to give MVR 1.6 billion as “block grants” next year for the local councils.
The Finance Ministry has issued a budget circular announcing the estimated amounts of free aid to individual councils would receive next year. The largest amount of free aid will be given to the Male’ City Council with MVR 166 million has been allocated to the council which is 10 per cent of the total grant to councils.
The second largest amount is given to the Addu city council. The council receives MVR 75 million in free aid. The third largest budget is given to the Puducherry City Council. The council will receive MVR 48 million while the Kulhudhuffushi City Council will receive MVR 36 million.
The Finance Ministry will allocate 20 percent of the free aid to four city councils in next year’s budget.
Finance Ministry said it will review the figures set for next year as block grants. However, councils have been requested to formulate next year’s budget based on the amounts recommended in the budget.
The budget submissions to local councils will also include block grants from the government, conditional grants from government agencies, trust funds and additional information provided to councils. Councils have been requested to submit details of the proposed budget for 2023 to 2025 before April 15.
