KOCHI: Sticking to the controversial policy initiated by its LDF-led predecessor, the new UDF-governed council of the Kochi corporation has decided to discontinue the division fund system, as it looks to tackle corruption and stabilise the civic body’s finances.
The decision comes years after UDF councillors opposed the move to reduce the division fund from Rs 1 crore to Rs 40 lakh in 2022. Mayor V K Minimol on Monday said allocating Rs 1 crore to each division was unfair and led to the creation of unnecessary files.
“The area and requirements of all 76 divisions (post delimitation) are different. There are small and large divisions. The small divisions may not have many projects to implement and complete. We need to look at the requirements before allocating funds,” she said.
Kochi was the lone body in the state to follow the division fund system under which Rs 1 crore was allocated annually to all 74 councillors for development works in their division, with total allocations reaching nearly Rs 370 crore during the council’s tenure.
The LDF-led council reduced the amount in the 2022 budget, after several councillors failed to utilise the allocated amount. The decision kicked up a row, with then UDF councillors in the opposition raising concerns and protests.
Former mayor M Anilkumar believes the move to reduce the division fund helped bring financial discipline in the corporation.
“We were spending funds without looking at the income and expenditure of the corporation. The requirements of every division are different. The development initiatives we implement in divisions in the Kochi, Palluruthy and Ernakulam areas are different. We need to look into the requirements of the division before allocating the amount,” he said.
Minimol said urgent projects, including those to address waterlogging and manage waste, can be implemented using the plan fund and the corporation’s general fund. “The aim is to reduce expenditure and increase income,” she said.