Kerala District Panchayat Claims ₹12.73 Crore Cut in Development Funds, LDF Protests

The Kannur district panchayat has alleged that the State government has reduced its development fund allocation by ₹12.73 crore, disrupting welfare schemes and development projects. The panchayat's governing body unanimously passed a resolution on Monday seeking immediate restoration of the funds.

According to the district panchayat, the government cut ₹3.61 crore from projects included in the 2026-27 Budget and approved by the District Planning Committee. It also claimed that ₹9.11 crore, sanctioned as Finance Commission Grant for 2025-26 and included in the new Budget, was withdrawn. The total reduction, it said, amounts to ₹12.73 crore.

The panchayat further stated that despite its present governing body completing four months in office, the first instalment of development funds for the current financial year has not been released. It also said the third instalment of ₹16 crore due for the previous financial year was withheld, citing the model code of conduct. This has left development and welfare programmes severely affected, the panchayat added.

Presenting the resolution, district panchayat vice-president T. Shabna urged the government to restore the funds. District panchayat president Binoy Kurian said the financial crisis had disrupted welfare schemes, including the distribution of motorised tricycles for persons with disabilities, the supply of medicines to hospitals, and the payment of employee salaries. He warned that the reduction would also affect sanitation and waste management activities and delay development works scheduled for the first four months of the financial year.

The Left Democratic Front (LDF) district committee has escalated the issue politically, alleging that the United Democratic Front (UDF) government drastically reduced Plan funds for local bodies. The LDF claimed that while the previous government's final Budget had earmarked ₹692 crore for Local Self-Government institutions, the UDF government reduced the allocation to ₹177 crore, a cut of ₹515 crore. The LDF alleged that the reduction has pushed local bodies into a financial crisis, leaving little scope for development after meeting mandatory expenditures such as the LIFE housing scheme and honorarium for anganwadi workers.

The LDF district committee has announced marches to local body offices on August 1 and 3 to protest the alleged reduction in Plan funds. The State government has not yet issued a response to the allegations.