The Ministry of Finance has instructed local councils to submit their budget proposals for the upcoming year, with a total of MVR 2.5 billion allocated for block grants. In accordance with established guidelines, councils are required to submit their medium-term budget forecasts for the period 2027–2029 by September 18. When preparing these budgets, councils must incorporate their projected independent revenue streams alongside the financial assistance provided by the state.
This allocation marks the highest budget ever designated for local councils in Maldivian history. While funding was previously distributed based on population size, the government has decided to revise the formula to include land area as a key determinant for fund allocation. This strategic policy shift aims to enhance the financial autonomy of councils and bolster the implementation of regional development projects.
