Haa Alif Council urges action to uphold decentralization as budget fails to meet basic needs

The Haa Alif Atoll Council has raised concerns over its 2026 budget allocation, warning that essential public services may be disrupted due to insufficient funding.

In a statement issued Wednesday, the council said the MVR 2.65 million allocated under the state’s block grant is not enough to cover basic operational costs, including staff salaries and administrative expenses. Even when estimating for the next three months, the council said the budget remains inadequate.

The council noted that it had approved a budget focused on community-relevant and financially beneficial activities, but did not disclose specific details. It has since sent a formal request to the Ministry of Finance, on the advice of the Local Government Authority (LGA), seeking urgent intervention to resolve the funding constraints.

The statement emphasized the need to address the shortfall to ensure uninterrupted services and uphold the principles of decentralization.

The budget crisis comes in the wake of major structural changes to local governance. On December 1 last year, the government amended the Constitution and related laws to abolish Atoll Councils and reduce the number of councillors nationwide.