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Plan funds: Opposition plea to be considered

By Our Special Correspondent

THIRUVANANTHAPURAM, FEB. 1. The Minister for Local Self-Government, Kutty Ahmed Kutty, has offered to consider the Opposition demand for releasing 25 per cent of the unspent annual Plan allocation for local bodies for taking up spillover work.

Responding to a calling-attention motion by T.M. Thomas Isaac, CPI(M), in the Assembly today, Mr. Kutty said the Government had decided not to allow spill-over work and introduce bill system for making payments to bring about better financial discipline and to ensure that the local bodies completed work undertaken during a year without any slippage.

The Minister denied the Opposition member's charge that the Government had drastically reduced annual Plan grant to local bodies and effected cuts in even the amounts sanctioned to them. He said the annual Plan allocation for the local bodies had increased from Rs. 800 crores in 2001-2002 to Rs. 1,023 crores in 2002-2003 and Rs. 1,437 crores in 2003-2004.

Out of the total allocation for 2003-2004, Rs. 1,252 crores was spent. The Government had also sanctioned around Rs. 800 crores to the local bodies as non-Plan assistance during the three years. The only reduction in Plan allocation to the local bodies was in the form of across-the-board Plan cut and this was not targeted exclusively against the local bodies, he said.

Bill system

Mr. Kutty said that the bill system was introduced on the recommendation of the second State Finance Commission headed by economist Prabhat Patnaik and that it was intended to streamline the functioning of the local bodies. He said there had been slippage in carrying out the recommendations, but added that around 10,000 officials had been given training and the bill system had already become operational.

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