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LDF walks out of Kerala Assembly, accuses CM Satheesan of ‘misleading’ House on fund cuts

Thiruvananthapuram: The Kerala Assembly on Wednesday witnessed a heated exchange over the reduction in scheme fund allocation to local self-government bodies; The opposition LDF withdrew after accusing Chief Minister VD Satheesan of “misleading” the Assembly.

The conflict started after GR Anil (CPI) moved an adjournment motion, claiming that the reduction in scheme funds had seriously affected the functioning of local institutions.

Responding to the motion, Satheesan said the House was informed on various occasions that plan fund allocations to local bodies had to be reduced by Rs 1,533.55 crore due to the state’s financial constraints.

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He claimed that the crisis was the result of the previous LDF government’s budgeting and planning.


According to the CM, the previous government had included projects worth around Rs 35,000 Million in the Budget despite knowing that only around Rs 20,000 Million would be available, making commensurate cuts across departments inevitable.
Criticizing the opposition, Satheesan said that Anil’s criticism was actually an indictment on the previous LDF government’s budget. The CM also claimed that it was the previous government that released the third installment of funds allocated in its final Budget due in December, citing the Assembly elections.

“The reduction of Rs 1,533 billion has become inevitable due to flaws in your budget and planning. You are criticizing us for this decision,” he said.

He maintained that the government had already informed both the Assembly and the public about the financial condition of the state and alleged that the current UDF government had allocated more funds than envisaged in the previous Budget.

Satheesan claimed that if the previous government’s budget had been implemented as it was, the reduction in plan funds would have been up to 57 percent.

“When you point one finger at the government, four fingers point at you,” he said.

However, Leader of Opposition Pinarayi Vijayan rejected the CM’s allegations and accused him of “misleading” the Assembly.

Terming Satheesan’s stance as “unfortunate”, Vijayan urged him to correct his position and rejected the claim that there was no proliferation of projects during the previous LDF government’s tenure.

He said the third installment of funds, which the CM claimed should have been released in December, was actually scheduled to be released in March, but could not be paid due to the Election Commission not giving permission after the Model Code of Conduct came into force ahead of the Assembly elections.

Vijayan claimed that the state currently has around Rs 6,000 billion as unspent balance and said releasing this amount to local bodies would provide significant relief.

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He argued that successive LDF governments have consistently spent more than the Budget allocation on local body projects.

According to him, expenditure stood at 94 per cent in 2011-16, 102 per cent in 2016-21 and 135 per cent in 2021-26, with the balance carried forward as expansion projects.

The Speaker then disallowed the adjournment motion based on the Prime Minister’s response and Opposition members subsequently walked out of the House.

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