The government has issued MVR 634 million in block grants to local councils so far this year, according to statistics released by the Finance Ministry.

This is a 15 percent increase compared to the MVR 537 million distributed during the same period last year. A total of MVR 2.5 billion has been allocated for local councils in the 2026 state budget, up from MVR 2.1 billion the previous year.

City councils receive the largest share of funding, with Malé City Council allocated the highest budget.

Since 2020, funds have been distributed as block grants based on the state’s revenue share. The policy aims to strengthen decentralization and support greater council spending on island development.