Contingency Budget to be utilized to maintain block grant levels for councils

The contingency budget will provide the necessary funds to maintain the block grant allocations to councils in next year’s budget, the Finance Ministry has said.

Finance Minister Moosa Zameer has informed decision to the Parliament.

Next year’s budget earmarks MVR 1.4 billion as block grants to councils, which falls short of the legally mandated allocation under the Decentralization Act. City mayors have raised concerns over the reduction in grants.

In a letter to Parliament, Minister Zameer said the block grant allocated to councils will be maintained in line with the current standards set by the Decentralization Act. He proposed covering the MVR 699.6 million shortfall from the contingency budget while ensuring that the legal requirements are met without raising the overall budget.

The Parliament has referred to the Budget Review Committee for further deliberation.