400 local self-government institutions get additional financial aid

THIRUVANANTHAPURAM:  Around 400 local self-governments have availed of the government’s additional financial assistance programme for LSGs which achieved plan fund utilisation above 90 pc. 
The additional assistance was promised by Finance Minister Thomas Isaac in the assembly.According to the Finance Minister’s office, panchayats which spent over 90 pc of fund will be eligible for an additional assistance to the tune of 25 pc of its plan fund. 

Municipalities and block panchayats will get 30 pc and municipal corporations 35 pc. “Most of the LSGs which have applied for additional assistance are grama panchayats. Plan fund utilisation is more easier for panchayats than higher institutions. Integration of the operations of various LSGs or government departments would delay the fund utilisation in LSGs in the higher tiers,” said an officer.

The government has earmarked over Rs 1,000 crore for additional assistance programme. Only about `250 crore has been sanctioned so far. The finance department expects more LSGs to avail of the assistance due to the Covid-19. “After the floods, the pandemic saw a huge drain in the funds of local bodies. Those who performed well will definitely need funds,” the officer said.

He said the department is yet to take a decision on extending the electronic queue system for bills which would help the departments spend their balance plan amount in next fiscal. Recently, the department had preponed the deadline for submission of bills this financial year to March 29, 2021. All heads of departments, drawing and disbursing officers have been asked to present bills, cheques and challans before 5 pm on the day.