Local self-government institutions will get an enhanced development fund of Rs.2,750 crore in 2011-12 against the Rs.2,049 crore in the current financial year.

Presenting the budget for 2011-12 in the Assembly on Thursday, Finance Minister T.M. Thomas Isaac said the government had accepted all recommendations of the fourth State Finance Commission headed by M.A. Oommen.

The commission has restored all deductions effected by the third commission and the grant-in-aid to civic bodies has grown at a spectacular rate.

The general purpose fund of civic bodies is pegged at Rs.617 crore and the maintenance grant, at Rs.793 crore. There is a 39 per cent increase in the total grant-in-aid from Rs.3,000 crore to Rs.4,160 crore.

New post

An executive engineer's post will be created in all blocks and municipalities, for which 85 posts have been sanctioned.

As much as Rs.34 crore is earmarked for the Backward Regions Grant Fund Scheme for Palakkad and Wayand districts, Rs.4.5 crore for the Information Kerala Mission and Rs.6 crore for the Kerala Institute for Local Administration.

The Minister provided Rs.175 crore for infrastructure component of the Jawaharlal Nehru National Urban Renewable Mission, Rs.70 crore for the Urban Infrastructure Development Scheme for Small and Medium Towns, Rs.176 crore for slum development and urban poverty reduction programmes, Rs.10.5 crore for the Kerala Sustainable Urban Development Project and Rs.10 crore for the Capital City Development Programme.


The outlay for Kudumbashree Mission has been enhanced from Rs.50 crore to Rs.100 crore. The outlay for the Ayyankali Urban Employment Guarantee Scheme is doubled from Rs.20 crore to Rs.40 crore.