The government has submitted a proposal to Parliament requesting an increase in the 2025 budget allocation for local councils, seeking a revised total of MVR 699.6 million, to be drawn from the contingency budget. Finance Minister Moosa Zameer presented the proposal during a session in Parliament, emphasising that this adjustment is essential to ensure councils receive the necessary resources to support their activities.

In his letter, Minister Zameer explained that the original budget allocated for councils in the 2025 state budget was MVR 1.4 million. However, the revised proposal seeks a significant increase to MVR 699.6 million, which will be sourced from the contingency budget without altering the overall state budget. The minister requested that Parliament ensure the total allocation for councils does not exceed this amount.

The government's proposed budget for the fiscal year 2025 stands at MVR 56.6 billion, with a primary focus on addressing recurring and capital expenditures. Of this amount, MVR 49.2 billion will be spent in the upcoming fiscal year, which includes MVR 35.9 billion for recurring costs and MVR 13.3 billion for capital investment. Additionally, MVR 3.9 billion has been earmarked for servicing state debt, MVR 378 million for capital issuance and investments in state-owned companies, and MVR 3.2 billion for government loans.

However, the budget for 2025 also reflects a deficit of MVR 9.4 billion, which amounts to 7.8% of the country's GDP. The primary deficit is projected at MVR 3.8 billion, or 3.2% of GDP, illustrating the government's ongoing efforts to manage national finances amid significant challenges.

This proposal for increased funding for local councils underscores the government’s commitment to supporting local governance and ensuring that councils have the resources needed to serve their communities effectively. The final decision on this allocation will be determined by Parliament following further discussions.