Kochi Corporation struggles with fund shortfall amid Plan allocation delays

Kochi Corporation is grappling with a significant shortfall in its Plan fund allocation from the Kerala state government, casting a shadow over its development initiatives and spending capacity. The civic body has so far received only ₹7.89 crore against its total allocation of ₹23.67 crore, leaving a substantial gap in its budget.

The situation is further compounded by substantial deductions at source, which have effectively reduced the received amount to just ₹80.70 lakh. These deductions, which typically include recoveries for various liabilities and statutory obligations, have further strained the corporation's financial position.

The delay in fund disbursement and subsequent deductions have put pressure on the corporation's ability to undertake planned capital works and developmental projects. The reduced availability of funds is expected to impact the pace of civic infrastructure improvements and service delivery across the corporation's jurisdiction.

The corporation's financial challenges underscore the broader issues of fund flow management between state and local authorities in Kerala. Officials have indicated that the matter requires urgent intervention to ensure timely fund releases and enable the corporation to execute its Plan schemes efficiently.