Local self-government institutions have registered a remarkable increase in Plan fund absorption in the first five months of the current financial year.
As per official estimates, out of the ₹6,227. 5 crore earmarked as Plan outlay, local bodies have expended ₹1,057.30 crore till August 31. This is considered to be an achievement in the grass-root level planning process.
Grama panchayats have expended 85.45%, block panchayats 74.55%, district panchayats 67.56%, municipalities 78.48% and Corporations 65.5%, which is considered as an all-time high. The total absorption rate has been pegged at 16.98%.
Concerted efforts made for expediting project preparation, fast-forwarding project clearances and implementation, and close scrutiny were being cited as the reasons for the progress in fund absorption.
Once the State switched over to the decentralised planning, a lion’s share of the Plan fund was apportioned to local bodies. But the alleged laxity in utilising the sanctioned funds had reflected on the utilisation of the State Plan schemes too.
Official sources told The Hindu here that the District Planning Committees were directed to accord approvals for projects by June 15 and this had helped the local bodies to start implementation in the right earnest.
Chief Minister Pinarayi Vijayan had directed all departments to strictly complete the process of issuing administrative sanction for all projects by September 30. These efforts for streamlining the planning and execution of projects have yielded the desired results. Credit for the increase in expenditure also goes to the weekly monitoring system put in place.
A system for rewarding the best and worst performers by posting their details on the website has prompted the heads and members of local bodies to strive hard for raising the bar or at least to escape the ignominy of being in the bracket of worst performers.
The system of publishing the details of poor performers had been eschewed, but the encomiums given for the best among the pick had inculcated a competitive spirit among them, sources said.
The absorption rate was bound to go up in the coming months after a confusion about the Goods and Services Tax rates while awarding works would be cleared soon, sources said.
