Kerala: Several projects come to a halt due to financial crisis in state

By Aishwarya Nair | First Published Jan 23, 2024, 11:04 AM IST

The state's financial difficulties have caused many initiatives to come to a complete halt. Taking into account the existing circumstances, completion of the projects announced in the previous budget will require an expenditure of Rs 19,000 crore.

Thiruvananthapuram: Even as the fiscal year was coming to an end, the state government failed to carry out several initiatives. The state's financial difficulties have caused many initiatives to come to a complete halt. Taking into account the existing circumstances, completion of the projects announced in the previous budget will require an expenditure of Rs 19,000 crore.

Being in overdraft even for regular costs like payroll, the government is considering deferring some projects until the following fiscal year. Even everyday costs, like salaries, are challenging these days. For more than a week, the Treasury has been operating in overdraft. The practice of racing to the end of the fiscal year and correcting the project utilisation is not so simple this time, according to many in the finance department.

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According to the latest estimate, only 53.15 percent of the annual plan of Rs 38,629 crore has been prepared. Only one-third of the Rs 7,460 crore allocated to the Local Self-Government Department was utilised.

In treasuries, there are roughly 18,000 outstanding bills. Under the local department, Life Mission's progress was only 3.76 percent. Merely 24.75 percent of the Rs 973 crore allocated for Kudumbashree's project was utilised. The Home Department, under the direct supervision of the Chief Minister, only used 26.30 percent of the funds assigned to the police.

This time, the implementation of the project is slow in the public works department, which is spending more than the allotted amount. There are 29 schemes in the last budget for roads and bridges. Only 63 percent of the Rs 1073 crore was spent. The exchequer is not in a position to pay even the pending bills with only weeks to go before the end of the financial year. A proposal before the government is to extend the project operations to the next financial year.

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