LGA spending rises above approved budget following new office setup

The Local Government Authority (LGA), the parent body of councils, has spent more than its allocated budget for this year as at the end of August, according to figures from the Finance Ministry’s latest Weekly Fiscal Developments report.

The report shows that the LGA has spent MVR 41.5 million as of 27 August 2026, exceeding its approved budget of MVR 38.1 million for the year.   

This amounts to an overspend of 8.92 percent.

Compared to the same period last year, the LGA had spent MVR 22.5 million as at 27 August 2025, meaning this year’s expenditure is MVR 15.6 million higher. 

The increase comes at a time when Atoll Councils were abolished in December last year as part of efforts to reduce expenditure. In March, former Local Government Minister Adam Shareef Umar announced that LGA’s atoll offices would be established in the buildings previously used by Atoll Councils.

These offices are now operational and providing services.

An LGA official told Sun that the agency’s expenditure increased due to the establishment and functioning of these provincial offices.

The LGA had earlier stated that the offices would operate as branches of the authority. Their main role is to deliver services previously provided by the LGA headquarters, support councils, and offer training where required.

According to the agency, this structure is intended to strengthen coordination between councils and the LGA and ensure the effective fulfillment of legal responsibilities.