Govt infuses additional 211 crore for LSGIs

Thiruvananthapuram: Govt approved an additional Rs 211 crore in assistance for local self-govt institutions, said finance minister KN Balagopal on Friday. This funding, sanctioned as general purpose fund, will be distributed among state's panchayats and municipalities to support essential services.The allocation includes Rs 150 crore for grama panchayats, Rs 7 crore for district panchayats and Rs 10 crore for block panchayats. In urban areas, municipalities will receive Rs 26 crore, while city corporations have been allocated Rs 18 crore. Thus total financial aid provided to local self-govt bodies in current fiscal year is Rs 6,250 crore.Besides panchayat funding, state govt approved an additional Rs 30 crore for Kerala State Road Transport Corporation (KSRTC), said Balagopal. Last week, govt provided Rs 20 crore in assistance. Currently, govt allocates to KSRTC Rs 50 crore every month. In 2023-24 budget, Rs 900 crore was earmarked for KSRTC, and govt already disbursed Rs 1,111 crore this year. Since taking office, this administration allocated Rs 6,100 crore to the transport corporation.Despite these infusions of funds, Kerala is grappling with a severe financial crisis. Treasury controls have been imposed, causing delays in even small payments, sparking fears that the administration could face operational paralysis if the situation worsens. Developmental funding has taken a significant hit, with state govt slashing Plan funds by 50%. This drastic measure impacted various projects, forcing govt to review all ongoing initiatives exceeding Rs 10 crore to determine their viability.To address revenue shortfall, govt directed all departments to increase fees for public services. Despite the financial strain, govt's commitment to local bodies and KSRTC remains firm, ensuring the continuation of essential services. However, the larger fiscal picture suggests that Kerala's financial troubles are far from over, and the impact of the crisis may soon affect a wider range of services.
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