MDP Congress: Decentralisation policy paper approved

Oct 3, 2026, 9:05 PM
Ali Niyaz at the MDP Congress: A proposal was submitted to reform the system to allow councils to receive tax revenue — Photo: Adhadhu

Ali Niyaz at the MDP Congress: A proposal was submitted to reform the system to allow councils to receive tax revenue — Photo: Adhadhu

The main opposition Maldivian Democratic Party (MDP) today passed a comprehensive decentralisation policy paper during its national Congress, submitted by Ali Niyaz, the Chairperson of the party’s Decentralisation Committee.

Niyaz’s policy paper addresses numerous challenges currently faced by local councils. He noted that the document was formulated based on technical expertise and consultations with the Local Government Authority (LGA).

Key highlights of the decentralisation paper include increasing the financial allocations for councils, granting them a share of tax revenues, and constitutionally defining the jurisdictions of local authorities.

Furthermore, the paper proposes the restoration of Atoll Councils and the implementation of a system allowing citizens to vote in their place of residence.

Proposed changes in the decentralisation policy include

  • Increasing the block grant for councils from 5% to 15% of total state revenue.
  • Commencing the disbursement of sectoral grants as stipulated in the Decentralisation Act.
  • Allocating 20% of Green Fund collections, 50% of land rent, and 5% of central taxes to local councils.
  • Facilitating the establishment of regional community banks and providing sovereign guarantees.
  • Constitutionally defining island and atoll jurisdictions and granting councils ownership of natural resources within those boundaries.
  • Restoring Atoll Councils.
  • Empowering councils to appoint and promote staff independently.
  • Reclassifying council members, excluding the President and Vice President, as part-time officials.
  • Dissolving Women’s Development Committees (WDCs) and ensuring equal gender representation for all council seats except the presidency.
  • Enabling residents to vote in the location where they currently reside.

Since the current administration took office, significant changes have been made to the decentralisation system. These include restricting the commercial activities of councils, stripping them of their hiring powers, and dissolving Atoll Councils.

Following these changes, the government faced a major setback in the Local Council Elections held in April. The MDP secured a majority of council seats across the country, including the mayoralties of all five cities in the Maldives.

Comments

Read More

Latest News

Next year’s budget is a “big scam”: MP Ameen

MP Ameen Faisal has condemned the government’s proposed 2025 budget as a "scam" designed to deceive the public and plunder national resources. He criticized the lack of progress on past projects despite massive state spending and accused the administration of failing to deliver on its promises to citizens.

MMA chief urges MIRA to audit resorts

MMA Governor Ahmed Munawar has urged the tax authority to audit resorts, noting that only 50 out of 150 currently pay income tax. He questioned the lack of reported profits and announced plans to tighten regulations next year to ensure more tourism-generated US dollars enter the national banking system.

Bill targets social media posts with fines up to MVR 500,000

A new bill submitted to the Maldives Parliament proposes fines up to MVR 500,000 for defamation on social media. The legislation targets both original posters and those who share defamatory content, including gestures and films. If a claim is proven false, courts must award damages between MVR 50,000 and MVR 500,000 to the plaintiff.

Alcohol can be sold in reclaimed islands under Rasmale' zone

The proposed Real Estate Bill allows for the sale and consumption of alcohol and pork on separately reclaimed islands within the Rasmale' zone. While these items remain strictly prohibited in residential and commercial areas, the new framework permits them on adjacent tourism islands to accommodate foreign residents and visitors.

Real Estate Bill grants Rasmale' Project special exemptions

The Real Estate Bill includes a provision exempting the Rasmalé project from competitive bidding and oversight by the ACC and Auditor General. This legal carve-out validates prior deals with UAE’s Eagle Hills, bypassing standard transparency rules. Future projects must meet strict investment criteria but lack the same total exemptions.

Man found dead in parked vehicle in Male'

A 41-year-old man was found dead inside a parked pickup truck in Malé on Saturday morning. He was pronounced dead on arrival at Indira Gandhi Memorial Hospital after being discovered unresponsive. Police are currently investigating the circumstances surrounding the death.

"Muizzu knows public would reject Rasmale' deal"

MDP leader Fayyaz Ismail claims President Muizzu is avoiding a public referendum on the Rasmalé land deal because he knows citizens would overwhelmingly reject it. Fayyaz argues the project lacks transparency and warns that future governments may be forced to alter the agreement if it proceeds without public consent.

Newsletter

Get the latest news delivered straight to your inbox