Financial Crisis Hampers Development Projects in Kerala: Slow Spending Raises Concerns

Kerala is facing a significant setback in its development initiatives as a severe financial crisis hampers progress on various projects. With only four months left in the current financial year, the state has spent a mere 40.36% of the total allocated amount of Rs 38,629.19 crores for developmental works. The central government’s reluctance to provide adequate financial support has left Kerala struggling to execute its planned projects. Bills exceeding Rs 1 lakh are currently on hold, and those under Rs 1 lakh are piling up at the treasury, reflecting the severity of the financial crunch.

Several key initiatives, such as the Life Mission aimed at building houses for the poor, have been significantly impacted. Despite allocating Rs 717 crores for the Life Mission in the current financial year, only 2.69% of the budget has been utilized. Similarly, the ‘Rebuilding Kerala Initiative,’ allocated Rs 904.83 crores for reconstructing roads and bridges damaged during floods, has seen minimal progress, with only 15.37% of the budget spent. The financial crisis is expected to have a ripple effect on salary and pension distributions for government employees, further underscoring the urgency for financial support and strategic planning to navigate the challenging economic landscape.

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