Local bodies to get Rs 1 lakh crore in next 5 yrs


S N Jayaprakash

The State Finance Commission that recommends the project fund for the local bodies has requested to increase the share of the local bodies every year for next five years.

Representative image | Photo: AP

Thiruvananthapuram: The local self-governments in which newly elected administrative committees will assume power are likely to get about Rs 1 lakh crore for developmental activities in the next five years. This amount includes the fund from the centre’s projects and the regular income of the local bodies. The amount is equal to one year’s average expenses of the state government.

The State Finance Commission that recommends the project fund for the local bodies has requested to increase the share of the local bodies every year for next five years. If this is implemented, they will get Rs 80,000 crore for five years from the state government and Rs 20,000 crore as central fund and the allotted income. The commission report is under consideration of the government.

Rs 80,000 crore was allocated for the local bodies as part of central projects. Rs 18,000 crore was allocated this year alone. The expenditure can be known by the end of the financial year. The local bodies get only 25 percent of the state project funds at present.

Six percent of the natural income is provided as maintenance grant and 3 percent as general purpose fund. The commission has recommended to increase all these shares every year. The fund will be allocated in the budget to be presented in January.

With the increase in funds, the elected representatives of local bodies will get huge opportunities. If they could prioritise the projects and utilise the funds effectively, Kerala will be able to achieve sustainable development.

The government is providing a huge amount of the Rs 1 lakh crore by borrowing money. The local body representatives are responsible for utilising the amount in the right way along with fulfilling their democratic responsibilities.

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