Thiruvananthapuram: Finance Minister Thomas Isaac told Assembly on Monday assured that the plan fund cut being contemplated by the government, would not be applicable to the local bodies.
Isaac was replying to opposition charge that the works in local bodies had been severely affected because of paucity of funds. Though the government had issued direction to departments to rework their projects on the basis of priority, no such instruction had been given to the local bodies. The minister refuted the opposition charge that development activities had taken a backseat in local bodies due to fund crunch. Isaac was hinting at the 30 per cent cut that the government might go for during the current financial year.
Though the government had slashed plan funds by 20 per cent last year, the local bodies were spared even that time. However, the finance minister made it clear that the government would refrain from slashing 30 per cent plan funds provided it gets a stimulus package from Central Government and if traders in the state submit their annual returns November end.
Isaac said he was hopeful of a positive response from the Centre.
Earlier, Congress MLA K C Joseph moved the notice for adjournment motion on the financial crisis being faced by local bodies. He sought an assurance from the immediate measures to overcome the fund crunch in local bodies.
