Local bodies' fund utilization ineffective due to lack of planning

THIRUVANANTHAPURAM: Local departments have highlighted a troubling trend in fund utilization, with only 21.05% utilized in the first half of the current financial year. The primary cause identified is the lack of timely planning leading to delayed project commencements. Despite department recommendations to initiate projects at the start of the financial year, many local bodies are disregarding this advice.

A significant issue observed is the inadequate preparation time for implementing schemes, especially for marginalized categories such as SC and ST. This results in wasted time and inefficiencies in execution. Furthermore, completing projects carried over from previous years, known as spillover projects is crucial for local bodies' effectiveness. Regrettably, only 6.22% of these spillover projects were completed in the current financial year.

Corporations lead in implementing spillover schemes at 8.73%, while Block Panchayats lag behind at 5.25%. The prevailing trend of delaying project planning until April severely hampers fund utilization in the first half of the year. Consequently, there's a rush to spend the maximum amount in the last three months, potentially compromising project quality.

Despite efforts to streamline project implementation through training sessions, the effectiveness of these initiatives remains questionable. The stagnation in project implementation, despite 25 years of public planning, is evident from the unchanged figures, mainly limited to paperwork rather than effective execution.