Kerala - Thiruvananthapuram   

Panchayat association opposes fund cut

Staff Reporter

THIRUVANANTHAPURAM: The Kerala Grama Panchayat Association has protested against the decision to cut general funds from the Plan funds allocated to grama panchayats. Association president K. Narayanan and general secretary S. Nazarudeen said in a statement here on Wednesday that when the Plan outlay for the State was increased, there was no proportionate increase in the Plan funds allocated to local self-government institutions.

Compared to the previous years, each panchayat has lost Rs.2 to Rs.6 lakhs owing to the cut in the general funds, he said.

Though it had been envisaged that Plan allocation for the local bodies institutions was one-third of the State Plan outlay, the allocation for the next financial year was only 25.91 per cent, they said.

Due to the cut in Plan funds and undeclared treasury curbs, the panchayats had lost projects valued at crores in the past few years.

The functioning of the panchayats was affected too. Hence, the Government should desist from cutting the general funds due to the panchayats, they said.

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