In case of our local board, circulation of Merit is getting decreasing very much.
Circulation of merit is decreasing around the entire forum and not exclusively your local board.
I am not sure whether it is better for Merit Source to actively distribute the merit or not
It does not matter whether you are sure or unsure on this matter, because it is not your place to tell merit sources how to distribute their merit. These people were chosen because their ability for discernment is up to par with the expectations of theymos. They have their own criteria, and will merit the posts they feel are deserving of merit.
I hope our local board will be more active.
This is the issue, not that the sources are not distributing their merit, but that there is not enough activity warranting of merit distribution.