The Finance Ministry said the contingency budget will be used to keep block grant allocations to councils at next year's budget, after the budgeted MVR 1.4 billion fell short of the Decentralization Act requirement. Finance Minister Moosa Zameer proposed covering the MVR 699.6 million shortfall from the contingency budget, and Parliament has sent the matter to the Budget Review Committee.
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Next year's budget earmarks MVR 1.4 billion as block grants to councils, which falls short of the legally mandated allocation under the Decentralization Act.
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He proposed covering the MVR 699.6 million shortfall from the contingency budget while ensuring that the legal requirements are met without raising the overall budget.
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The Parliament has referred to the Budget Review Committee for further deliberation.
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