Kochi Corporation's Plan Fund Expenditure Stalls at 43% Amid Financial and Operational Hurdles
With less than a week remaining to finalize plan fund projects and submit bills to the district planning committee (DPC), Kochi Corporation has spent only 43% of the allocated funds for the 2025-26 fiscal year. This underperformance places the corporation in a critical position as the deadline looms, yet it surprisingly ranks second among all corporations across the state in terms of plan fund utilization.
Reasons Behind the Low Expenditure: Treasury Restrictions and Election Duties
Mayor V K Minimol attributed the sluggish spending to significant bills worth crores that are pending with the state treasury. "The main reason for our underperformance is the restrictions imposed by the state government due to the ongoing financial crisis," Minimol explained. "If these bills were cleared, our plan fund expenditure would have been substantially higher. This is a widespread issue affecting all local bodies in Kerala."
She expressed optimism that some pending bills might be processed soon, potentially boosting the corporation's standing. "We anticipate a few more bills will be cleared in the coming days, which could elevate our expenditure and possibly help us surpass Kollam Corporation to secure the top position among state corporations," Minimol added.
Beyond financial constraints, operational challenges have also impeded progress. M G Aristotle, a member of the finance standing committee at Kochi Corporation, highlighted that several officials responsible for plan fund projects are currently engaged in election-related work. "The unavailability of key employees has severely hampered the implementation of numerous plan fund initiatives," Aristotle noted.
Impact on Health Sector and Wellness Clinics
The corporation's health sector has been particularly affected by the non-allocation of a Union government health grant. Aristotle revealed that last year, Rs 120 crore was earmarked for Kochi Corporation, but the state government later informed that the central funds were not released. "This fiscal year, the health fund has not even been earmarked, which directly impacts our ability to execute vital health projects," he said.
One significant casualty of this funding gap is the establishment of wellness clinics across the city. Of the 38 proposed clinics, five remain unconstructed or unset. Each clinic is designed to be staffed by a doctor, a nurse, a pharmacist, a cleaning staff member, and a multipurpose worker, aiming to provide accessible healthcare in neighbourhoods. "With the grant, we could have accelerated the setup of these wellness clinics, offering primary healthcare locally and reducing the need for residents to travel to larger hospitals for basic services," Aristotle emphasized.
Broader Implications and Future Prospects
The plan fund is crucial for financing diverse projects in sectors such as infrastructure, development, agriculture, and education. The current delays not only hinder immediate project completion but also affect long-term urban planning and community welfare. Despite these setbacks, Kochi Corporation's second-place ranking indicates a relative efficiency compared to peers, though there is clear room for improvement.
As the deadline approaches, stakeholders are closely monitoring whether the pending bills will be cleared and if staff can be reallocated post-elections to expedite project implementation. The outcome will determine if Kochi can enhance its expenditure and potentially lead the state in plan fund utilization, fulfilling its developmental goals for the fiscal year.
