The State government will have to revisit the sectoral fund ceilings set for local bodies and also prompt them to defer capital expenditure for at least a year to channelise maximum resources for bolstering health-care infrastructure facilities in the wake of the COVID-19 outbreak.
Other than 25% of the Plan funds, 9.5% of the State’s revenue is being religiously apportioned to local governments for meeting their committed expenditure, comprising salary and administrative costs, and for constructing and maintaining roads and buildings. In the present context, a cut in Plan size will eventually have its impact on the allocation down the line, but the State’s share may remain untouched.
The resource crunch triggered by the virus spread may force the government to take a more realistic view of the Plan size and route more funds for enhancing the health-care facilities and educational infrastructure facilities.
Local Administration Department sources told The Hindu that considering the spurt in revenue expenditure, local governments would have to defer projects for constructing roads and similar facilities at least till the State succeeds in containing the damage incurred by the virus spread.
Sources say in deferring such infrastructural projects, the local bodies would not have to bother about inviting criticism, as the move is in the face of a crisis. Also, the proactive role being played by local bodies by setting up community kitchens and also enforcing quarantine in their area has increased their stock among the public. Even some of their harsh critics have hailed their pivotal role in handling the situation-related emergencies.
MGNREGS
More accent will have to be laid for using the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for asset creation and for planned investment in the agriculture and animal husbandry sectors. Though the State has set a remarkable record in executing the job scheme, it needs to be optimised further by creating durable public assets for posterity. This could be done without upsetting the job component through meticulous planning.
Given the volume of funds expended through the job scheme, it could be used for enhancing public facilities. It will also increase the spending capacity of the rural poor.
In the current context, the Centre may not slash the allocation for the scheme, say sources.
If their community-based interventions made to complement the State’s virus containment efforts are any hint, the local bodies could resort to more such service activities that will not incur added financial burden. There is a crying need for such a reorientation and it may come up for active consideration of the government soon, sources say.
