President Dr Mohamed Muizzu has declared a major governance reform that will abolish Atoll Councils and grant Island Councils greater authority, resources and responsibility. The move, announced during his address to the people of Lh. Olhuvelifushi, aims to bring decision making closer to the public and accelerate development in every island.

The President stated that funds currently allocated to Atoll Councils will be redirected to Island Councils. By placing financial control directly in the hands of local leaders, the Government intends to ensure that essential services are provided efficiently and without delay.
As part of this shift, the upcoming national budget will include a significant increase in budget allocations for Island Councils. These funds will focus on delivering targeted social support, including assistance for persons with disabilities, vulnerable families and those facing emergency situations. According to President Muizzu, councils must use this financial expansion to fulfill their mandate of protecting and supporting the welfare of every resident.
The President confirmed that the national budget will be submitted to Parliament before the end of this week. It will include every pending development project promised to communities, as well as those already initiated this year. These projects have been planned over a two year implementation period to guarantee timely progress.
President Muizzu reaffirmed that strengthening the grassroots governance system is central to his nationwide vision. By empowering councils and shifting public services directly to the island level, the Administration is restructuring governance to ensure that national development directly improves the daily lives of citizens in all parts of the country.

