Ministries plan council empowerment, decentralization reforms

The Ministry of Cities, Local Government and Public Works, in conjunction with the Ministry of Finance and Planning, has engaged in significant deliberations concerning the augmentation of council revenues and the fostering of rural economic development.

According to the Ministry of Local Government, discussions primarily centered on the implementation of President Dr. Mohamed Muizzu's commitments toward the advancement of councils, women's development committees, and individual islands.

The President's pledges encompass enabling councils to secure financing through the banking system to stimulate rural economic growth and to generate sustainable revenue from atoll-based shops.

To further empower both councils and women's development committees, the President has committed to allocating five percent of block grants exclusively for the committees' intended activities. Furthermore, a presidential assurance has been made to institute positive revisions to the regulations governing the allocation of block grants to councils.

The Local Government Ministry stated that the two ministries deliberated on the requisite steps to achieve these objectives and to ensure the timely and successful execution of the local authority company's initiatives in securing funding for its projects.

The government's amendments to the Decentralization Act have elicited much public criticism and disdain. Several island and city councils objected too, calling for the withdrawal of the bill. However, the PNC-supermajority parliament had on Wednesday passed the amendments to the Decentralization Act.

According to the latest amendments made to the Decentralisation Act, councils would be prohibited from levying rent for land or structures utilized for fundamental public services and would receive revenue subsequent to state tax deductions, provided they are not delinquent in public service payments for a period exceeding six months.

The amendments further stipulate that councils are required to maintain bank accounts in adherence to Ministry of Finance procedures and to furnish statements upon request.