Keralam’s Kochi Corporation in a tight spot over Plan fund utilis

The Kochi Corporation has so far received only ₹7.89 crore of its ₹23.67 crore Plan fund allocation from the Keralam government, even as more than six months remain in the ongoing fiscal and the Central Finance Commission grant is still awaited.

The position has become tighter because the amount available from the State allocation has effectively fallen to ₹80.70 lakh after deductions at source, including ₹1.42 crore towards wages of anganwadi workers and ₹5.65 crore towards the loan component for purchase of land at Brahmapuram.

Opposition flags reduced allocation

The Opposition LDF has alleged that the Plan fund allocation to the Corporation has been significantly scaled down and is preparing to intensify its protest over what it calls tardy utilisation of Plan funds by the civic body.

V.A. Sreejith, LDF parliamentary party leader, said the State government’s Plan fund allocation for the Corporation had come down from ₹133 crore during the previous LDF government to ₹23.67 crore under the current UDF government.

“Funds are yet to be provided to applicants under the LIFE Mission and for scholarships to over 50 differently abled applicants from the previous year,” Mr. Sreejith said.

He said works currently being tendered were being executed using the Corporation’s own funds, while approval for projects had been secured from the District Planning Committee on the basis of loans.

Mr. Sreejith also said spillover works from the previous fiscal were now largely under way.

Contractor payments and delayed grants

Dependence on Central Finance Commission funds is also being pointed to as a challenge because those funds are often not received on time.

According to the concern being raised, delays in receiving Central Finance Commission funds adversely affect payments to contractors for works already executed.

The issue is significant for the Corporation because, according to the available figures, the portion of the State Plan fund actually available after deductions is far smaller than the original ₹23.67 crore allocation.

It also matters because the Central government allocations, which the Corporation is counting on, are yet to be released.

Mayor cites Finance Commission allocations

Mayor V.K. Minimol has countered the Opposition’s argument, claiming that the Corporation effectively has more funds at its disposal than before.

She cited the Central Finance Commission allocation of around ₹83 crore each under tied grants and untied grants, besides the State government allocation of ₹23.67 crore.

The tied grants are meant for specific purposes only, according to the description of the Central Finance Commission allocation cited by the Mayor.

Corporation sources said that, apart from a portion of the State government allocation, ₹8 crore under the Scheduled Tribe Component has been received.

At the same time, the Central government allocations have not yet been released, leaving the civic body’s fund position dependent on money that has been cited but is still awaited.

The Corporation is therefore dealing with a reduced effective State Plan fund in hand, pending Central Finance Commission releases, and Opposition criticism over project financing and fund utilisation.

Source: The Hindu