Southern States
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Kerala-Thiruvananthapuram
Financial crisis may hit implementation
By Our Staff Reporter
THIRUVANANTHAPURAM, DEC. 11. Crippling staff shortage and acute financial crisis caused by treasury restrictions have bogged down development projects taken up by the Thiruvananthapuram Corporation and threatens to disrupt routine civic functions. The crisis has affected both the budget proposals and projects under the People's Plan Campaign.
Plan projects have been paralysed and no new works have been taken up since March this year. Almost all the ongoing projects, including housing schemes have ground to a halt following delay in releasing the fourth instalment of the Plan Campaign funds.
The indiscriminate transfer of officials following the change of Government has worsened the situation. With tax collection slowing down, the Corporation is running up a monthly revenue-expenditure gap of over Rs. 30 lakhs. The impact of the crisis is worse in the new wards annexed to the city from the five suburban panchayats.
As contingency workers and contractors threaten to go on strike this week, the Corporation administration is making a frantic effort to avert a further crisis. The ruling front blames the UDF Government for precipitating the crisis in a bid to tarnish the image of the LDF-ruled Corporation. The Opposition, however, claims that financial mismanagement is responsible for the situation.
The delayed sanction of Plan funds has left the Corporation with little time to implement the projects efficiently. Many of the spill-over projects are still incomplete. Corporation functionaries say it would be difficult, if not impossible, to complete the works in three months.
The Plan funds are granted annually on the basis of the expenditure of the previous year. If the expenditure fails to meet the set target there would be a proportionate cut in the following year. With the Government failing to provide the Plan funds on time, there is very little scope for spending the funds in a meaningful manner.
The LDF leaders allege that the transfer of officials in key posts had made it impossible to take up development works. "Most of the senior officials who are experienced in project implementation have been transferred out. The new staff will take time to come to grips with their job," says a senior Corporation functionary.
The Deputy Mayor, Mr. Sujanapriyan, who heads the standing committee on Finance, says that tax collection can be stepped up only if the staff strength was augmented to the optimum level. ``There are just 70 sanctioned posts of bill collectors against a demand for 81. Appointment of staff from the employment exchange on a temporary basis is a big financial drain on the Corporation since they leave after six months, just when they have got the hang of the job''.
With contractors on the warpath, the Corporation finds itself unable to take up road repairs. A major section of the city road network is filled with potholes and in urgent need of resurfacing. Due to treasury restrictions, contractors are unable to encash the cheques issued by the Corporation. The contingency workers are planning to go on strike demanding wage arrears.
The Mayor, Ms. J. Chandra, said it would be difficult to take up new budget proposals under the current situation. The Plan Campaign and the devolution of powers to local bodies has highlighted the need for additional staff. The Corporation can generate an additional Rs. 11 crores if it has the necessary staff strength, she said.
``The staff shortage has resulted in tardy collection of advertisement and building tax and the failure to assess buildings. With senior officials like the Corporation Secretary, Revenue Officer and Accounts Officer transferred several times in the course of the last six months, it has become difficult to carry on the functions of the local body,'' she said.
Ms. Chandra said the Corporation could overcome the crisis if the Government was prepared to clear the arrears on rent and tax. The Government owes crores of rupees to the Corporation as vehicle tax compensation and stamp duty arrears.
Ms. Chandra said the LDF Government had been more receptive to the Corporation's problems. The departments were ready to cooperate but the situation has changed for the worse with the change of Government,'' she says. The Mayor said efforts were on to circumvent the crisis through private participation in construction works and even routine functions of the Corporation.
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