Enhanced allocation for local bodies

Local self government bodies are expected to have a little more elbow room for developmental activities this year with the State Budget enhancing the plan allocation for local bodies from 27.5% to 28% of the entire outlay, making it a total of ₹15,980.49 crores. With the Kerala Urban Policy Commission to formulate a comprehensive urban policy set to submit its recommendations, an overarching urban focus is visible in the Budget. The Finance Minister observes that over 70% of Kerala’s population is expected to reside in urban areas by 2031, up from 47.72% in 2011. A detailed proposal will be formulated to aid the urban local governments and their consortium to raise an amount of ₹1,000 crore through floating Municipal Bonds, Green Bonds and Pooled Municipal Bonds, with the funds so mobilised to be used for developmental activities.