Block Grant Formula Needs to be Changed - Mayor Ismail Rafeeq

To effectively run the councils and turn them into more prosperous councils, the Mayor of Fuvahmulah City, Ismail Rafeeg, said that changes need to be made to the current block grant formula that the government is using to distribute block grants.

He said this during a speech at the third Viavathi Raajje Conference held from September 10-12, 2022 in L. Gamu.

Although councils have been receiving benefits through the decentralization block grants, the Mayor of Fuvahmulah City, Ismail Rafeeg, notes that the grant amount is not considered fair.

In preparation for the Viavathi Raajje Conference, during the Fanolhe Dharbaru, a presentation was developed based on the discussions of council members about empowering councils financially, which included the financial challenges faced by councils and the ways to resolve those issues.

Regarding the block grant given to councils, currently, 5 factors are being considered. For island councils, this is based on the island's population, and for atoll councils, it is based on the atoll's population, land area, the capital island of the atoll, distance from Male', and the performance score given by the Local Government Authority. Currently, the government is providing councils with 5% of state revenue as block grant and 40% of rental income from islands and lagoons. Additionally, the decentralization law includes provisions for establishing companies and creating business opportunities.

This conference is specifically dedicated to the mayors and council presidents of the southern atolls - Dh, Th, L, Ga, Gn, Fuvahmulah City, and Addu City, along with the presidents of women's development committees.

'Viavathi Raajje' Conference is a direct presidential initiative to provide an opportunity for council members to discuss and find solutions to challenges faced by councils, through direct discussions with the President, relevant ministers, and heads of related institutions.The conference aims to strengthen the decentralization system and address council challenges.

The term 'Viavathi' symbolizes opportunity, selflessness, harmony, joy, and fearlessness.