Decentralized Planning through Local Self Governments in Kerala
The role of local bodies in the formulation and implementation of plan was very limited in Kerala like other parts of India before 1996-97. Main activities were the local bodies were the utilization of untied plan grants and implementation of sponsored projects of State as well as Central Governments. As a First time in the history of Local Self Governments, in 1989-90 following the recommendations of Shri S.B.Sen , State Government decided to provide every village with an untied plan grant which could be utilized as per their priorities. In the State budget of 1996-97 Government of Kerala allocated total of Rs.212 Crores ,ie,Rs.69 Crores for the Urban Local Bodies and Rs.143 Crores for the rural local bodies as untied plan grants. These allocations were made in addition to the schematic transfer to the tune of Rs.109 Crores to the panchayatiraj institutions. Thus the total transfer to the Local bodies in 1996-97 was Rs.321 Crores.
Government of Kerala had been earmarking assigned taxes, shared taxes and statutory and non statutory grants in aids to the LSGs upto the implementation of the Second State Finance Commission period. Since the implementation of the Second Finance Commission , the budgetary provisions of grants- in aid to LSGs has four categories, ie, General purpose /traditional functions , road maintenance assets, non road maintenance assets and plan grants ( expansion and development). Second Finance Commission advocated three and half percentage of own revenue be devolved to LSGs as General Purpose grants or otherwise called traditional Functions grants. This grants could be utilized for meeting expenses in the traditional sectors and operating costs of the LSGs. Maintenance grants to roads and non roads was also recommended by the Second Finance Commission. Plan grants can also be divided into three, ie, general sector, Special Component Plan ( SCP) and Tribal Sub Plan ( TSP).
Table No.1
Total budgetary allocation to the Local Self Governments in Kerala
Plan fund | Non Plan | Total | |
1996-97 |
212.00 |
616.15 |
828.15 |
1997-98 |
749.00 |
297.20 |
1046.20 |
1998-99 |
950.00 |
384.30 |
1334.30 |
1999-00 |
1020.00 |
405.40 |
1425.40 |
2000-01 |
1045.00 |
419.90 |
1464.90 |
2001-02 |
850.00 |
440.90 |
1290.90 |
2002-03 |
1342.00 |
472.20 |
1814.20 |
2003-04 |
1317.00 |
505.60 |
1822.60 |
2004-05 |
1350.00 |
531.00 |
1881.00 |
2005-06 |
1375.00 |
657.00 |
2032.10 |
2006-07 |
1400.00 |
649.00 |
2049.90 |
2007-08 |
1540.00 |
714.90 |
2254.90 |
2008-09 |
1694.00 |
786.30 |
2480.30 |
2009-10 |
1863.00 |
865.00 |
2728.00 |
2010-11 |
2050.00 |
951.00 |
3001.50 |
2011-12 |
2750.00 |
1409.80 |
4159.80 |
2012-13 |
3228.00 |
1821.20 |
5049.20 |
2013-14 |
4000.00 |
2314.60 |
6314.60 |
2014-15 |
4700.00 |
2706.80 |
7406.80 |
2015-16 |
4800.00 |
2879.40 |
7679.40 |
20 years average |
1911.75 (65.85) |
991.38 (34.15) |
2903.21 (100.00) |
Source: Economic Reviews of various years and budgetary documents.
Non Plan assistance
Total budgetary allocation to the Local Self Governments in Kerala from 2004-05 to 2015-16
Year |
Traditional Functions |
Maintenance to roads |
Maintenance to non roads |
Plan Fund |
Total |
2004-05 |
205.3 |
129.3 |
196.4 |
1350 |
1881.0 |
2005-06 |
255.5 |
174.9 |
226.7 |
1375 |
2032.1 |
2006-07 |
300.0 |
138.9 |
211.0 |
1400 |
2049.9 |
2007-08 |
330.0 |
152.8 |
232.1 |
1540 |
2254.9 |
2008-09 |
362.9 |
168.1 |
255.3 |
1694 |
2480.3 |
2009-10 |
399.3 |
184.9 |
280.8 |
1863 |
2728.0 |
2010-11 |
439.2 |
203.4 |
308.9 |
2050 |
3001.5 |
2011-12 |
617.0 |
528.5 |
264.3 |
2750 |
4159.8 |
2012-13 |
735.2 |
724.0 |
362.0 |
3228 |
5049.2 |
2013-14 |
900.1 |
943.0 |
471.5 |
4000 |
6314.6 |
2014-15 |
1052.6 |
1102.8 |
551.4 |
4700 |
7406.8 |
2015-16 |
1119.8 (14.6) |
1173.1 (15.3) |
586.5 (7.6) |
4800 (62.5) |
7679.4 (100.0) |
Since 2004-05 Government of Kerala has been earmarking allocation to LSGs as Traditional Functions, Maintenance to roads, Maintenance to non roads and Plan Fund as per the recommendation of Second State Finance Commission.
Plan assistance
Table no.2 Plan allocation
Year |
Total Plan allocation |
Total |
% to total |
1996-97 |
2200 |
212 |
9.64 |
1997-98 |
2855 |
749 |
26.23 |
1998-99 |
3100 |
950 |
30.65 |
1999-00 |
3250 |
1020 |
31.38 |
2000-01 |
3535 |
1045 |
29.56 |
2001-02 |
3015 |
850 |
28.19 |
2002-03 |
4026 |
1342 |
33.33 |
2003-04 |
4430 |
1317 |
29.73 |
2004-05 |
4800 |
1350 |
28.13 |
2005-06 |
5369 |
1375 |
25.61 |
2006-07 |
6680 |
1400 |
20.96 |
2007-08 |
6950 |
1540 |
22.16 |
2008-09 |
7700 |
1694 |
22.00 |
2009-10 |
8920 |
1863 |
23.30 |
2010-11 |
10025 |
2050 |
21.90 |
2011-12 |
11030 |
2750 |
23.30 |
2012-13 |
14010 |
3228 |
23.00 |
2013-14 |
17000 |
4000 |
23.50 |
2014-15 |
20000 |
4700 |
23.50 |
2015-16 |
20000 |
4800 |
24.00 |
Average for 20 years |
7944.75 |
1911.75 |
25.00 |
Source: Economic Review 2012 and Budget Documents
Figure No. 1 Percentage of Plan assistance to LSGs
Table no. 3 . Plan assistance to various forms of LSGs
Year |
Grama Panchayat |
Block panchayat |
District panchayat |
Municiplity |
Corporation |
Total |
% change |
1996-97 |
100.00 |
15.00 |
28.00 |
54.00 |
15.00 |
212 |
- |
1997-98 |
420.49 |
108.69 |
123.94 |
62.34 |
33.54 |
749 |
253.3 |
1998-99 |
549.54 |
135.02 |
142.67 |
81.89 |
40.88 |
950 |
26.8 |
1999-00 |
595.01 |
144.41 |
148.39 |
88.13 |
44.06 |
1020 |
7.37 |
2000-01 |
608.92 |
148.8 |
153.07 |
89.52 |
44.69 |
1045 |
2.45 |
2001-02 |
483.43 |
115.32 |
115.32 |
74.41 |
61.52 |
850 |
(-)18.66 |
2002-03 |
760.84 |
179.94 |
180.94 |
122.60 |
97.68 |
1342 |
57.88 |
2003-04 |
741.70 |
179.60 |
185.01 |
117.44 |
93.25 |
1317 |
(-)1.86 |
2004-05 |
759.17 |
185.02 |
190.79 |
119.91 |
95.11 |
1350 |
2.51 |
2005-06 |
777.05 |
192.25 |
198.21 |
115.12 |
92.37 |
1375 |
1.85 |
2006-07 |
787.89 |
199.85 |
205.83 |
144.44 |
91.99 |
1400 |
1.80 |
2007-08 |
866.68 |
219.83 |
226.4 |
125.91 |
101.18 |
1540 |
10.00 |
2008-09 |
943.44 |
240.08 |
243.67 |
107.42 |
107.42 |
1694 |
10.00 |
2009-10 |
1048.66 |
265.99 |
273.95 |
152.23 |
122.14 |
1863 |
10.00 |
2010-11 |
1154.16 |
292.53 |
301.28 |
167.69 |
134.31 |
2050 |
10.03 |
2011-12 |
1515.46 |
372.32 |
372.32 |
275.56 |
214.31 |
2750 |
34.14 |
2012-13 |
1849.95 |
398.57 |
399.07 |
333.27 |
247.57 |
3228 |
11.73 |
2013-14 |
2207.49 |
532.66 |
532.66 |
408.58 |
318.58 |
4000 |
23.91 |
2014-15 |
2595.59 |
622.98 |
622.98 |
482.38 |
376.05 |
4700 |
17.5 |
2015-16 |
2685.59 |
622.98 |
622.98 |
491.38 |
377.05 |
4800 |
2.12 |
20 years average |
1072.55 (56.10) |
258.59 (13.53) |
263.37 (13.78) |
180.71 (9.46) |
135.44 (7.08) |
1910.66 (100.00) |
-
|
Source: Economic Review 2007 and
Utilization of available funds in Local Self Governments
LSGs have been allocation their plan funds into three sectors common called productive, service and infrastructure sectors. Total fund available for these sectors in 2013-14 was Rs.5057.59 Crores. Out of this 9 percent allocated to productive sector, 58 percent allocated to service sector and the remaining 33 percent allocated to infrastructure sector.
Table no.4 Availability and utilization of Funds in LSGs
Year |
Fund available |
Expenditure |
% of expenditure |
2003-04 |
1228.67 |
1089.86 |
88.70 |
2004-05 |
1163.72 |
930.63 |
79.97 |
2005-06 |
1370.65 |
980.93 |
71.57 |
2007-08 |
1713.16 |
1377.49 |
80.41 |
2008-09 |
1966.94 |
1441.43 |
73.28 |
2009-10 |
2368.27 |
1749.01 |
73.85 |
2010-11 |
2882.50 |
1917.04 |
66.51 |
2012-13 |
3870.32 |
2741.67 |
70.84 |
2013-14 |
5057.59 |
3918.27 |
77.47 |
Source: Economic Review from 2003 to 2013
Table no.5 Availability and utilization of Funds in Grama Panchayats
Year |
Fund available |
Expenditure |
% of expenditure |
2003-04 |
813.03 |
804.48 |
98.95 |
2004-05 |
657.28 |
547.86 |
83.35 |
2005-06 |
774.70 |
588.91 |
76.02 |
2007-08 |
958.44 |
762.73 |
79.58 |
2008-09 |
1140.05 |
840.69 |
73.74 |
2009-10 |
1332.09 |
980.53 |
73.61 |
2010-11 |
1480.18 |
1046.85 |
70.72 |
2012-13 |
2176.69 |
1591.21 |
73.10 |
2013-14 |
2765.37 |
2246.59 |
81.24 |
Source: Economic Review from 2003 to 2013
Table No.6 Availability and utilization of Funds in Block Panchayats
Year |
Fund available |
Expenditure |
% of expenditure |
2003-04 |
189.96 |
182.11 |
95.91 |
2004-05 |
158.01 |
128.50 |
81.32 |
2005-06 |
191.74 |
126.96 |
66.21 |
2007-08 |
238.80 |
203.04 |
85.02 |
2008-09 |
276.21 |
223.87 |
81.05 |
2009-10 |
315.50 |
257.60 |
81.65 |
2010-11 |
423.51 |
287.82 |
67.96 |
2012-13 |
466.24 |
393.07 |
84.31 |
2013-14 |
607.96 |
551.33 |
90.69 |
Source: Economic Review from 2003 to 2013
Table no.7 Availability and utilization of Funds in District Panchayats
Year |
Fund available |
Expenditure |
% of expenditure |
2003-04 |
200.93 |
156.05 |
77.66 |
2004-05 |
162.50 |
113.44 |
69.81 |
2005-06 |
197.20 |
107.27 |
54.40 |
2007-08 |
253.61 |
197.66 |
77.94 |
2008-09 |
277.27 |
183.48 |
66.17 |
2009-10 |
367.57 |
260.21 |
70.79 |
2010-11 |
543.48 |
294.15 |
54.12 |
2012-13 |
493.05 |
317.43 |
64.38 |
2013-14 |
704.52 |
465.58 |
66.09 |
Source: Economic Review from 2003 to 2013
Table no.8 Availability and utilization of Funds in Municipalities
Year |
Fund available |
Expenditure |
% of expenditure |
2003-04 |
129.87 |
121.50 |
93.56 |
2004-05 |
103.47 |
84.14 |
81.32 |
2005-06 |
114.61 |
101.91 |
88.91 |
2007-08 |
140.89 |
114.58 |
81.33 |
2008-09 |
163.23 |
125.31 |
76.77 |
2009-10 |
187.09 |
140.85 |
75.29 |
2010-11 |
230.29 |
161.94 |
70.32 |
2012-13 |
411.71 |
255.09 |
61.96 |
2013-14 |
541.35 |
395.95 |
73.14 |
Source: Economic Review from 2003 to 2013
Table No.9 Availability and utilization of Funds in Corporations
Year |
Fund available |
Expenditure |
% of expenditure |
2003-04 |
104.36 |
81.63 |
78.22 |
2004-05 |
82.46 |
56.69 |
68.75 |
2005-06 |
92.37 |
55.86 |
60.48 |
2007-08 |
121.41 |
99.46 |
81.92 |
2008-09 |
110.16 |
68.06 |
61.79 |
2010-11 |
205.02 |
126.26 |
61.59 |
2012-13 |
322.61 |
184.88 |
57.30 |
2013-14 |
438.36 |
258.80 |
59.04 |
Source: Economic Review from 2003 to 2013
Table no.10 Comparison of availability and utilization of funds in LSGs
Local Body |
Grama Panchayats
|
Block Panchayats
|
Dist. Panchayat
|
Municipalities
|
Corporations
|
2003-04 |
98.95 |
95.91 |
77.66 |
93.56 |
78.22 |
2004-05 |
83.35 |
81.32 |
69.81 |
81.32 |
68.75 |
2005-06 |
76.02 |
66.21 |
54.40 |
88.91 |
60.48 |
2007-08 |
79.58 |
85.02 |
77.94 |
81.33 |
81.92 |
2008-09 |
73.74 |
81.05 |
66.17 |
76.77 |
61.79 |
2010-11 |
73.61 |
81.65 |
70.79 |
75.29 |
61.59 |
2012-13 |
70.72 |
67.96 |
54.12 |
70.32 |
57.30 |
2013-14 |
73.10 |
84.31 |
64.38 |
61.96 |
59.04 |
Source: Compiled from Economic Reviews from 2003 to 2013
Tierwise and sector wise allocation of Plan Funds during 1997-98 to 2006- 07
(Rs.Crores)
Local Body |
General |
SCP |
TSP |
Total |
1997-98 |
|
|
|
|
Grama Panchayats |
307.02 |
105.85 |
7.62 |
420.49 |
Block Panchayats |
65.79 |
35.28 |
7.62 |
108.7 |
Dist. Panchayat |
65.79 |
35.28 |
22.87 |
123.94 |
Municipalities
|
49.54 |
12.15 |
0.65 |
62.34 |
Corporations
|
27.86 |
5.44 |
0.24 |
33.53 |
Total
|
516.00 |
194.00 |
39.00 |
749.00 |
1998-99 |
|
|
|
|
Grama Panchayats |
426.02 |
108.21 |
15.31 |
549.54 |
Block Panchayats |
91.29 |
36.07 |
7.66 |
135.02 |
Dist. Panchayat |
91.29 |
36.07 |
15.31 |
142.67 |
Municipalities
|
71.18 |
10.17 |
0.54 |
81.90 |
Corporations
|
36.22 |
4.48 |
0.18 |
40.87 |
Total
|
716.00 |
195.00 |
39.00 |
950.00 |
1999-2000 |
|
|
|
|
Grama Panchayats |
464.10 |
111.03 |
19.88 |
595.01 |
Block Panchayats |
99.45 |
37.01 |
7.95 |
144.41 |
Dist. Panchayat |
99.45 |
37.01 |
11.93 |
148.39 |
Municipalities
|
77.51 |
10.38 |
0.24 |
88.13 |
Corporations
|
39.49 |
4.57 |
- |
44.06 |
Total
|
780.00 |
200.00 |
40.00 |
1020.00 |
2000-01 |
|
|
|
|
Grama Panchayats |
467.08 |
120.47 |
21.37 |
608.91 |
Block Panchayats |
100.09 |
40.16 |
8.55 |
148.79 |
Dist. Panchayat |
100.09 |
40.16 |
12.82 |
153.06 |
Municipalities
|
78.00 |
11.26 |
0.26 |
89.53 |
Corporations
|
39.75 |
4.96 |
0.00 |
44.70 |
Total
|
785.00 |
217.00 |
43.00 |
1045.00 |
2001-02 |
|
|
|
|
Grama Panchayats |
384.84 |
98.59 |
- |
483.43 |
Block Panchayats |
82.46 |
32.86 |
- |
115.32 |
Dist. Panchayat |
82.46 |
32.86 |
- |
115.32 |
Municipalities
|
64.85 |
9.56 |
- |
74.41 |
Corporations
|
53.39 |
8.13 |
- |
61.52 |
Total
|
668.00 |
182.00 |
- |
850.00 |
2002-03 |
|
|
|
|
Grama Panchayats |
618.84 |
142.00 |
- |
760.84 |
Block Panchayats |
132.61 |
47.33 |
- |
179.94 |
Dist. Panchayat |
132.61 |
47.33 |
- |
180.94 |
Municipalities
|
105.38 |
17.22 |
- |
122.60 |
Corporations
|
83.06 |
14.62 |
- |
97.68 |
Total
|
1073.50 |
268.50 |
- |
1342.00 |
2003-04 |
|
|
|
|
Grama Panchayats |
580.42 |
139.26 |
22.02 |
741.70 |
Block Panchayats |
124.37 |
46.42 |
8.81 |
179.60 |
Dist. Panchayat
|
125.38 |
46.42 |
13.21 |
185.01 |
Municipalities’
|
100.15 |
16.89 |
0.40 |
117.44 |
Corporations
|
78.91 |
14.34 |
- |
93.25 |
Total
|
1009.23 |
263.33 |
44.44 |
1317.00 |
2004-05 |
|
|
|
|
Grama Panchayats |
584.84 |
150.50 |
23.83 |
759.17 |
Block Panchayats |
125.32 |
50.17 |
9.53 |
185.02 |
Dist. Panchayat
|
126.32 |
50.17 |
14.30 |
190.79 |
Municipalities’
|
100.88 |
18.56 |
0.47 |
119.91 |
Corporations
|
79.31 |
15.80 |
- |
95.11 |
Total
|
1016.67 |
285.20 |
48.13 |
1350.00 |
2005-06 |
|
|
|
|
Grama Panchayats |
574.75 |
177.50 |
24.80 |
777.05 |
Block Panchayats |
123.16 |
59.17 |
9.92 |
192.25 |
Dist. Panchayat
|
124.16 |
59.17 |
14.88 |
198.21 |
Municipalities’
|
93.75 |
20.80 |
0.57 |
115.12 |
Corporations
|
74.54 |
17.83 |
- |
92.37 |
Total
|
990.36 |
334.47 |
50.17 |
1375.00 |
2006-07 |
|
|
|
|
Grama Panchayats |
544.11 |
213.87 |
29.91 |
787.89 |
Block Panchayats |
116.60 |
71.29 |
11.96 |
199.85 |
Dist. Panchayat
|
116.60 |
71.29
|
17.94
|
205.83
|
Municipalities’
|
88.70 |
25.06 |
0.68 |
114.44 |
Corporations
|
70.50 |
21.49 |
- |
91.99 |
Total
|
936.51 |
403.00 |
60.49 |
1400.00 |
2007-08 |
|
|
|
|
Local Body |
General |
SCP |
TSP |
Total |
Grama Panchayats |
59851.71 |
23525.93 |
3289.64 |
86667.28 |
Block Panchayats |
12825.37 |
7841.98 |
1315.85 |
21983.20 |
Dist. Panchayat
|
12825.37 |
7841.98 |
1973.77 |
22641.12 |
Municipalities’
|
9757.46 |
2756.59 |
75.74 |
12589.79 |
Corporations
|
7755.09 |
2363.52 |
- |
10118.61 |
Total |
103015.00 |
44330.00 |
6655.00 |
154000.00 |
2008-09 |
|
|
|
|
Local Body |
General |
SCP |
TSP |
Total |
Grama Panchayats |
65836.98 |
25878.52 |
3618.48 |
95333.98 |
Block Panchayats |
14108.01 |
8626.18 |
1447.31 |
24181.50 |
Dist. Panchayat
|
14108.01 |
8626.18 |
2171.02 |
24905.21 |
Municipalities’
|
10733.30 |
3032.25 |
83.19 |
13848.74 |
Corporations
|
8530.70 |
2599.87 |
0 |
11130.57 |
Total |
113317.00 |
48763.00 |
7320.00 |
169400.00 |
2009-10 |
|
|
|
|
Local Body |
General |
SCP |
TSP |
Local Body |
Grama Panchayats |
72420.70 |
28465.76 |
3980.05 |
104866.51 |
Block Panchayats |
15518.90 |
9488.84 |
1591.88 |
26599.62 |
Dist. Panchayat
|
15518.90 |
9488.84 |
2388.11 |
27395.85 |
Municipalities’
|
11806.73 |
3325.61 |
91.38 |
15223.72 |
Corporations
|
9383.88 |
2830.42 |
0 |
12214.30 |
Total |
124649.11 |
53599.47 |
8051.42 |
186300.00 |
2010-11 |
|
|
|
|
Local Body |
General |
SCP |
TSP |
Total |
Grama Panchayats |
79730.77 |
31310.34 |
4375.56 |
115416.67 |
Block Panchayats |
17068.79 |
10435.72 |
1748.57 |
29253.08 |
Dist. Panchayat
|
17068.79 |
10435.72 |
2624.42 |
30128.93 |
Municipalities’
|
13015.40 |
3656.17 |
98.02 |
16769.59 |
Corporations
|
10320.27 |
3111.46 |
0 |
13431.73 |
|
137204.02 |
58949.41 |
8846.57 |
205000.00 |
2011-12 |
|
|
|
|
Local Body |
General |
SCP |
TSP |
Total |
Grama Panchayats |
995.60 |
341.07 |
58.62 |
1395.30 |
Block Panchayats |
233.13 |
113.69 |
19.54 |
366.36 |
Dist. Panchayat
|
204.66 |
113.69 |
19.54 |
337.90 |
Municipalities’
|
208.76 |
50.86 |
1.37 |
261.00 |
Corporations
|
159.15 |
40.90 |
0 |
200.05 |
Total |
1801.32 |
660.23 |
99.09 |
2560.64 |
2012-13 |
General |
SCP |
TSP |
Total |
|
|
|
|
|
Grama Panchayats |
1524.22 |
556.62 |
95.85 |
2176.69 |
Block Panchayats |
279.22 |
158.88 |
28.15 |
466.25 |
Dist. Panchayat
|
276.82 |
180.37 |
35.87 |
493.06 |
Municipalities’
|
317.79 |
91.64 |
2.28 |
411.71 |
Corporations
|
243.56 |
79.05 |
0.01 |
322.62 |
Total |
2641.6 |
1066.56 |
162.17 |
3870.33 |
2013-14 |
|
|
|
|
|
General |
SCP |
TSP |
Total |
Grama Panchayats |
945.43 |
427.35 |
73.54 |
1446.32 |
Block Panchayats |
365.70 |
142.45 |
24.51 |
532.66 |
Dist. Panchayat
|
365.70 |
142.45 |
24.51 |
532.66 |
Municipalities’
|
199.69 |
63.77 |
1.72 |
265.18 |
Corporations
|
186.51 |
52.17 |
0 |
238.68 |
Total |
2063.03 |
828.19 |
124.28 |
3015.5 |
2014-15 |
General |
SCP |
TSP |
Total |
Grama Panchayats |
1154.03 |
478.63 |
82.36 |
1715.02 |
Block Panchayats |
435.98 |
159.54 |
27.45 |
622.97 |
Dist. Panchayat
|
435.98 |
159.54 |
27.45 |
622.97 |
Municipalities’
|
242.74 |
71.42 |
1.93 |
316.09 |
Corporations
|
223.14 |
58.43 |
0 |
281.57 |
Total |
2491.87 |
927.56 |
139.19 |
3558.62 |
2015-16 |
General |
SCP |
TSP |
Total |
Grama Panchayats |
1244.03 |
478.63 |
82.36 |
1805.02 |
Block Panchayats |
435.98 |
159.54 |
27.45 |
622.97 |
Dist. Panchayat
|
435.98 |
159.54 |
27.45 |
622.97 |
Municipalities’
|
251.74 |
71.42 |
1.93 |
325.09 |
Corporations
|
224.14 |
58.43 |
0 |
282.57 |
|
2591.87 |
927.56 |
139.19 |
3658.62 |
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