Councils across the country have been allocated MVR 1 billion in block grants so far this year, according to Finance Ministry statistics.

The figure represents about 40 per cent of the total MVR 2.5 billion earmarked for council grants in this year’s budget.

In comparison, MVR 700 million was released during the same period last year.

Council block grants are used to cover staff salaries, as well as certain administrative expenses of local councils.

The disbursement comes as newly elected council members assumed office last week.

Since 2020, the government has shifted to a system of block grants as the primary form of financial support to councils, replacing earlier arrangements. Under the system, allocations are determined in relation to state revenue.

The distribution formula takes into account island population, land area, distance from atoll administrative centres and Male', as well as performance scores assigned by the Local Government Authority.

Last year, MVR 2.1 billion was budgeted for council block grants, with an additional MVR 8 million spent. The previous year, MVR 2.2 billion was allocated.