The Hindu : Kerala / Thiruvananthapuram News : Local bodies to get Rs.2,050 crores

Online edition of India's National Newspaper
Saturday, Feb 11, 2006

Kerala

Kerala - Thiruvananthapuram

Local bodies to get Rs.2,050 crores

Special Correspondent

The aid was Rs. 2,032 crores for this year

THIRUVANANTHAPURAM : Local Self-Governments will get a handsome assistance of Rs.2,050 crores from the Government during the coming financial year.

Finance Minister Vakkom Purushothaman, in his Budget speech in the Assembly on Friday that no other State had ever devolved so much funds to the LSGs.

The assistance given to the LSGs in 2003-04 was Rs.1496 crores, the following year Rs.1,881 crores and during the current year Rs. 2,032 crores. He added that Kerala won a national award of Rs.5 crores for the State with the best Panchayathi Raj system.

He stated that the institutionalisation efforts launched by the Government to strengthen decentralisation would be put on a fast track during 2006-07 in order to put the systems and procedures properly in place before the start of the Eleventh Five Year Plan. Special priority would be given for improving the planning process, maintenance of accounts, conduct of audit and enhancement of people's participation.

KILA initiative

A new initiative would be launched by the Kerala Institute of Local Administration to upgrade the quality of management of the institutions transferred to the LSGs.

The recommendations of the Third State Finance Commission would be implemented for strengthening the finances of the LSGs. It would take the much acclaimed fiscal decentralisation efforts of the State to a higher plane.

He expressed pride at the fact that Kerala was the first State in the country to implement the recommendations of the Third State Finance Commission. Coming to other issues relating to the LSGs, he said the Maintenance and Development Funds would be released in ten monthly instalments from next year and the computerisation process of the institutions would be completed in 2006-07.

He paid rich tributes to the KILA which had emerged as the prime institution of its kind in the country in capacity building of elected functionaries.

In recognition of its status, it was being developed as a SAARC Centre of Excellence in local governance for which special efforts would be made to upgrade its facilities. He earmarked a sum of Rs.2.25 crores for the purpose.

Kudumbasree projects

As the Kudumbasree-Asraya projects meant for eradicating poverty were doing very well, he earmarked Rs.70.84 crores in the Budget for the continuance of the programme.

Coming to urban affairs, he said he was providing Rs.3.94 crores towards next year's Government contribution for the Clean Kerala Mission set up to improve the environmental status of the urban areas.

He pointed out that the cities and towns of India constituted the world's second largest urban system. There was, therefore, a proposal to introduce a special scheme for the improvement of basic facilities in them in a time-bound manner.

The Centrally-assisted programme was known as National Urban Renewal Mission. An outlay of Rs.90 crores was being provided for the implementation of the programme.

Aid for cities

He earmarked Rs.5 crores each for the development of infrastructure and beautification of Kozhikode and Kochi cities. City Development Committees had already been set up to coordinate the development.

The Minister also set apart Rs.2.60 crores for providing cremation facilities in corporation and municipal areas.

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