Governance decentralization / Governance Maldives Impact 8.0/10 1 min read

President Muizzu Champions Fair Funding: New Formula to Empower All Councils

President Dr. Mohamed Muizzu announced a reform to ensure equitable distribution of state funds for island councils. The new fiscal formula, to be presented with the 2026 national budget, will consider both population and land size, addressing the disadvantage faced by small-population islands with large land areas under the current system defined by Law No. 7/2010 (Article 79 of the Decentralization Act). This change aims to empower local councils and strengthen decentralization.

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Sep 5, 2025

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President Dr. Mohamed Muizzu announced a reform to ensure equitable distribution of state funds for island councils. The new fiscal formula, to be presented with the 2026 national budget, will consider both population and land size, addressing the disadvantage faced by small-population islands with large land areas under the current system defined by Law No. 7/2010 (Article 79 of the Decentralization Act). This change aims to empower local councils and strengthen decentralization.

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