KOCHI: Kochi corporation’s proposal to issue municipal bonds has sparked concerns among Opposition councillors who fear that it may lead to a debt trap. The corporation plans to raise funds for development activities by leveraging municipal land as collateral, which the Opposition believes is ill-advised given the corporation’s existing revenue struggles.
“Local bodies are bearing the brunt of the state government’s flawed economic policies, and if this trajectory continues, the Kochi corporation will inevitably fall into a debt trap. To avoid this, municipal bonds should be invested exclusively in productive assets,” UDF councillor Henry Austin said, while discussing the budget presented by Deputy Mayor K A Ansiya on Monday. The 2025-26 budget proposes raising resources from municipal bonds to boost development projects in the city.
Responding to the criticism, LDF councillors countered that the municipal bonds have received state government backing and are essential for development. Antony Kureethara, leader of the Opposition in the council, said the corporation’s CSR fund utilisation lacks transparency.
“The CSR funds provided by various institutions are being transferred to various agencies under the corporation. The budget is proof that the utilisation of funds is not monitored properly,” he said.
Meanwhile, LDF councillors said the budget aims at the welfare of people from all walks of life.
“Most of the announcements in the 2019-20 budget by the UDF council were implemented by the current council in the past four years. The LDF council has fulfilled most of the promises made to the people. This will motivate the council to implement more development projects in the city,” said C A Shakeer, the development standing committee chairman.