KOCHI: A huge reduction in the plan allocation for Kochi corporation — around Rs 110 crore — in the state budget for financial year 2026-27 led to an uproar by the CPM-led opposition in the council on Monday.
A resolution moved by LDF councillors K J Basil and Elizabeth Teacher, demanding the state government revise the reduced plan fund allocation, sparked a debate. However, it was rejected by the Congress-led council. The resolution was moved after the development fund was reduced to Rs 23.67 crore from Rs 133.34 crore, resulting in a reduction of Rs 109.67 crore from last year.
“The matter should not be politicised. Rs 23.67 crore is not enough to carry out the development projects in the city, and it will affect all 76 divisions in the local body. The state government’s reduction in the plan allocation must be reversed. It is incorrect to claim that the loss can simply be compensated through the finance commission grant,” said V A Sreejith, the leader of the opposition.
At the same time, Mayor V K Minimol argued that with Union government grants yet to be received, the corporation would be able to maintain a balance.
“We expect to receive around Rs 168 crore in grants. Transport and waterlogging are our top priorities. The amount we receive will be utilised to resolve such issues, and Rs 50 lakh will be allocated to all divisions for the same,” she said.
BJP councillors too demanded that the resolution be passed, demanding the state government restore the reduced plan fund allocation.
However, following the debate, the council, through voting, decided to reject the resolution and write to the chief minister and the state government on increasing the amount. The mayor had earlier written to the chief minister, expressing concerns over the reduced plan fund allocation.
Meanwhile, V P Chandran, the councillor representing Vyttila division, urged the local body to focus on revenue generation to increase its own funds.
“We need to ensure proper tax collection in the city. The move to issue municipal bonds and green bonds can help increase the funds,” he said.
Rs 109.67 cr reduction
A resolution moved by LDF councillors demanded the state government revise the reduced plan fund allocation
The resolution was moved after the development fund was reduced to C23.67 crore from C133.34 crore, resulting in a reduction of C109.66 crore from last year
