Local self-government institutions in Kerala, which have been saddled with increasing responsibilities over the years, had something to cheer for in the State Budget as their plan outlay was enhanced to 28.09% of the State Plan Outlay. An amount of ₹8,532 crore has been earmarked as Plan share. In 2023, the share of local bodies was 27.19%, while it was 26.5% in 2022. Minister for LSGIs M.B. Rajesh lauded the Finance Minister for honouring the LDF’s commitment to increase the local body share despite financial constraints.
The outlay includes an amount of ₹180 crore for the ongoing Solid Waste Management Project being implemented in municipalities and corporations. Apart from this an amount of ₹4,131.19 crore as maintenance fund and ₹2,542.27 crore as general purpose fund are set apart.
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However, seemingly recognising the fund crunch that local bodies have been facing, the Finance Minister said that they can also mobilise funds through loans from financial institutions and municipal bonds. Fund pooling was another option suggested. He said that the government will take steps to provide assistance to the schemes spearheaded by local bodies such as industrial parks, public enterprises and commercial centres. An amount of ₹100 crore is earmarked this year for assisting such schemes.
₹50 crore for extreme poverty eradication
The Left Democratic Front (LDF) government’s ambitious programme to eradicate extreme poverty, being implemented through local bodies, is set to be completed by November 2025, when all the 64,006 families identified in the survey are expected to be uplifted to a better social and economic state. Mr. Balagopal said that 47.9% of these families have been liberated from extreme poverty. The State government had prepared microplans for each of the families to identify their specific needs. An amount of ₹50 crore is earmarked for the project in the upcoming year.
The Finance Minister accused the Union government of being reluctant to provide adequate funds for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). An amount of ₹230.10 crore is set apart as State share for the scheme, while an amount of ₹4,459.71 crore is expected as the Union government’s share. An amount of ₹35 crore has been allocated for the Tribal Plus scheme, implemented by the State government to provide an additional 100 days of work for Scheduled Tribe families. In addition, an amount of ₹165 crore has been earmarked to create 60 lakh person days of work under the State government’s Ayyankali Urban Employment Guarantee Scheme.
Meanwhile, the local self-government bodies have an added responsibility this year, as the ground level implementers of the State government’s plan to achieve constitutional literacy for the entire population.
