Budget 2020 includes MVR one mill to local councils, along with block grant

MVR one million is allocated to local councils in the proposed state budget for 2020, in addition to a block grant.

Under Secretary at the President’s Office, Ahmed Hamdhaan revealed that the grant formula mainly prioritizes population, distance of the island with the capital city Malé, use of land on the island and island councils’ performance.

Moreover, an equalization grant has also been allocated under the block grant and it will be distributed among local councils equally, said Hamdhaan.

Further, Hamdhaan highlighted that the state budget for 2020 proposes hefty funds for local councils like never seen before, with a free aid of MVR 1.6 billion.

Hamdhaan went on to add that although they have formulated a grant formula to equally provide funds to local councils under the budget, they are yet to implement it.