State tries to pass the buck on Centre for poor financial situation in local bodies

Opposition stages a walkout as Speaker denied permission for an adjournment motion to debate the issue of poor financial situation in local bodies

Published - June 27, 2024 07:48 pm IST - THIRUVANANTHAPURAM

The Assembly on Thursday witnessed a heated exchange of words between Local Self-Governments Minister M.B. Rajesh and the Opposition over the issue of smothering the local bodies by not issuing various funds, including maintenance grants, general purpose funds, and development funds, for the local development in time. The Minister, however, tried to put the blame on the Centre for the poor annual fund allocation for the local bodies.

Replying to an adjournment motion moved by Congress legislator T. Siddique on the fiscal crisis in the local bodies, the Minister confirmed that there were treasury restrictions in the last fiscal, resulting in local bodies being unable to make use of the funds allotted for them. Only 71.5 % of the development fund was utilised. The hostile attitude adopted by the Centre towards Kerala without giving the due share of the Finance Commission grant aggravated the crisis, he said.

20% unspent funds

As a result, the State disbursed the final installments of the development fund, the maintenance grant, and the last three installments of the general purpose fund for 2023–24 fiscal only at the fag end of the last fiscal. However, the State government is now exploring ways to compensate for the loss of funds by carrying over the 20% unspent funds to the next fiscal year, said the Minister.

Leader of Opposition V.D. Satheeshan, however, said the present crisis in the local bodies could be resolved only if the third installment of the 2022-23 annual plan along with the carry-over amounts due from 2021-22 annual plan are returned to the local self-government bodies. The bills due in March 2023 were paid by the State government from the previous year’s plan allocation. If less than 80% is spent, the local body will lose the remaining funds, he said.

‘Contradicting figures’

The State is also mocking the people of Kerala by putting up some contradicting figures. For instance, the local bodies were not given carry-over funds from 2021-22 financial year. Now, the government says that the carry-over fund should be taken from this year’s plan fund. Then there would be severe reductions in the plan fund for this year, rendering the normal functioning and annual planning of the local bodies in trouble, said Mr. Satheeshan.

The government is also not interested in addressing the issue in real terms. Whenever the Opposition points to the crisis, the State will try to put up some figures comparing them with the previous UDF government. Then it should also compare them with the performance of previous governments up to the government led by E.M.S Namboodiripad to get the real picture of the crisis, he said.

The Opposition, later, staged a walkout when the Speaker denied permission for an adjournment motion to debate the issue. 

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.