BUDGET PROVISIONS TO LOCAL SELF GOVERNMENT INSTITUTIONS AS PLAN ALLOCATION

124 Pages·2013·0.53 MB·English

BUDGET PROVISIONS TO LOCAL SELF GOVERNMENT INSTITUTIONS
AS PLAN ALLOCATION IN 2013-14

Local Self Government Institutions are provided Plan Allocation in two different
streams. They are;
I. Plan Allocation for Centrally Sponsored Schemes and State Sponsored Schemes
II. Plan Allocation for Local Development (Development Fund)
The schemes included in the first stream have been transferred to LSGIs for
implementation. Under this scheme, the guidelines for Centrally Sponsored Schemes are
formulated by the Central Government and for State Sponsored Scheme, the State
Government. The role of the LSGIs under this stream is to act only as an agency for
executing the scheme after deciding the location or beneficiaries of the scheme.
For the second stream, the LSGIs have full freedom in formulating and implementing
schemes after deciding their priority subject to a general overall framework.

I. Plan Allocation For Centrally Sponsored Schemes and State Sponsored
Schemes.
The total outlay proposed in the Annual Plan 2013-14 for State Sponsored Schemes
and Centrally Sponsored Schemes is ` 1161.25 crore. A brief description of such schemes
earmarked in the budget 2013-14 is given below.
Rural Development
1.1 Indira Awaaz Yojana - IAY (General) (25% State Share)
(Outlay ` 4500.00 lakh)
The objective of this scheme is to provide dwelling units to the homeless Scheduled
Castes and Scheduled Tribes, Freed Bonded Labourers and other non SC/ST Rural Poor
below poverty line. Government of India has revised the unit cost of IAY houses from
`48500/- to ` 70000/-in plain areas and ` 75000/- in hilly difficult areas w.e.f. April 2013
onwards. The beneficiaries should have at least two cents of land for house construction.
Every house constructed under this scheme should have not less than 20 sq.mts of plinth
area, but no plan or design is prescribed.

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Physical Target of IAY during 2013-14
Component No. of beneficiaries
SC ST Minorities Others Total
1 2 3 4 5 6
(i) New Houses 13480 1226 1960 7843 24509
(ii) Upgradation of
2870 260 418 1652 5200
Katcha houses
(iii) Credit cum
234 21 38 131 424
subsidy scheme
Total 16584 1507 2416 9626 30133

Of the total allocation for Indira Awaz Yojana, provision can be made for
construction of houses under credit cum subsidy scheme and the implementation of existing
kutcha houses into pucca houses. The maximum assistance that can be as subsidy will be
` 15,000/- under credit cum subsidy category, the subsidy part will be ` 15,000/- and `
60,000/- will be provided as credit from banks. The funding pattern of the scheme between
centre and State is 75:25.
Financial Target 2013-14
(` lakh )
Component Central State Total
1 2 3 4
(i) New Houses 12867 4289 17156
(ii) Upgradation of Katcha houses 585 195 780
(iii) Credit cum subsidy scheme 48 16 64
Total 13500 4500 18000

Women Component
As per IAY guidelines, the allotment of houses should be given in the name of
women. If that is not possible the allotment should be given jointly with husband and wife.
The number of houses that will be allotted in the name of women will be 28700 and 3% of
the total houses are reserved for physically handicapped.
An amount of ` 4500.00 lakh is provided under the scheme as state share during
2013-14.

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1.2 National Rural Livelihoods Mission (NRLM) (25% State Share)
(Outlay ` 2200.00 lakh)
The National Rural Livelihoods Mission is the restructured SGSY Programme to
provide self/wage employment opportunities for the rural poor through self Help Groups. It
replaces the earlier self-employment and allied programmes viz. IRDP, TRYSEM, DWCRA,
SITRA, GKY, MWS and SGSY which are no longer in operation. Kudumbashree mission is
the state level nodal agency for implementing this programme. The core objective of the
programme is to establish micro-enterprises covering all aspects of self employment viz,
organization of the rural poor into self-help groups and their capacity building, planning of
activity clusters, infrastructure build up, technology, credit and marketing. The main
components of this programme are capacity building of organizational net work, skill
development training for self employment, development of marketing support, social
inclusion of all left out communities and livelihood development. NRLM is demand driven
and is funded in the ratio 75:25 between Centre and State.

Thrust areas
 Capacity Building
 Interest subsidy
 Provision of Capital Subsidy
 Infrastructure and Marketing areas
 Skills & Placement Projects & Innovation

Women component
The entire allocation of Kudumbashree mission is targeted at women of the
community net work programme.
An amount of ` 2200.00 lakh is provided for NRLM during 2013-14 as 25% state
share.

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1.3 Administrative Cost of DRDAs (25% State Share)
(Outlay ` 380.00 lakh)
The state share for the administrative cost of DRDAs, which function as the Poverty
Alleviation Units of District Panchayats is included for meeting the expenditure towards the
following components.
Break up of Financial Target 2013-14 (`in lakh)
Sl. No Component Outlay Proposed
(state share)
1 2 3
(i) Salary 266
(ii) Contingencies (Inclusive of Rent, POL, 76
Office Expenses etc.)
(iii) 10% administrative costs admissible to 38
the state.
Total 380

An amount of ` 380.00 lakh is provided as State Share for the administrative cost of
DRDAs during 2013-14.
1.4 Rural Infrastructure Development Fund (RIDF) – NABARD assisted scheme
(Outlay ` 1380.00 lakh)
NABARD is operating RIDF since 1995-96 for creation of Rural Infrastructure of
various kinds. The outlay proposed is for the completion of spill over schemes of District
Panchayat, Block Panchayat and Grama Panchayat as well as creation of new Rural
Infrastructure of various kinds. Altogether there are 31 eligible activities for which NABARD
provides financial assistance at present. This includes agriculture, irrigation, soil
conservation, flood control, social sector project and rural connectivity.

Tentative Physical Target 2013-14

Components No. of Projects
1 2
(i) Rural Roads 9
(ii) Buildings 7
(iii) M.I 4
(iv) Others 2
Total 22

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An amount of `1380.00 lakh is provided as state share for the scheme during 2013-14.
New Scheme
1.5 Assistance to SHGs under SGSY Scheme
(Outlay ` 1000.00 lakh)
About 72741 SHGs were formed in our state. Out of this only 22119 groups were
given economic assistance through a mixture of subsidy and credit. There is no allocation and
release of SGSY Scheme from 2012-13. Hence it is the responsibility of state to assist
through a fully sponsored scheme. The objective of the scheme is to provide assistance for
starting up micro enterprises of existing self help group of the erstwhile SGSY Programme
and help them to cross the poverty line.
Physical and Financial Breakup
Sl. Component Financial Target
No (` lakh)
1 2 3
1 Provide skill upgradation training to 4000 20.00
beneficiaries
2 Provide assistance to set up microenterprises of 980.00
Self Help Groups
Total 1000.00

An outlay of ` 1000.00 lakh is provided for the programme during the year 2013-14.

Urban Development
1.6 Urban Infrastructure Development Scheme for Small and Medium Towns
(UIDSSMT).
(Outlay : ` 16249.00 lakh)

Urban Infrastructure Development Scheme for Small and Medium Towns
(UIDSSMT) was launched during the year 2005-06 by subsuming the then ongoing schemes
- Integrated Development of Small and Medium Towns (IDSMT) and Accelerated Urban
Water Supply Programme (AUWSP) to improve the infrastructure in small and medium
Towns in the country. In Kerala, 54 urban local bodies (excluding Thiruvananthapuram and
Kochi corporations, Thirippunithura and Kalamasseri Municipalities) are eligible for getting
financial assistance under the scheme.
The objectives of the scheme are:-
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 Improving infrastructural facilities and helping in the creation of durable public assets
in small and medium towns having potential to emerge as regional centers of
economic growth and employment and thereby reducing the inclination of the people
belonging to rural and smaller urban areas to migrate to bigger cities and towns for
jobs or settlement.
 Decentralising economic growth and employment opportunities and promoting
dispersed urbanization while taking due advantages of the functional interlinkages
between villages, towns and cities through a regional planning approach.
 Increasing the availability of sites for housing, commercial and industrial uses and
promoting the principles of planned and orderly spatial development.
 Integrating spatial and socio-economic planning as envisaged in the constitution (74th
Amendment) Act 1992 and preparing and implementing Town/City Development
plans.
 Promoting resources –generating schemes for the Urban Local Bodies to improve
their overall financial position and ability to undertake long-term infrastructure
development programmes on their own as well as to repay the borrowed capital and
usher in necessary municipal reforms.
The funding pattern is 80:20 shared by the Central and State Governments. The State
share (20%) would be equally shared (ie. 10% each) by state and the participating Urban
Local Self Governments. The KSUDP is the State Level Nodal Agency for the scheme.
An amount of `16249.00 lakh is provided as Other Central Assistance of which
`1787.00 lakh is the State Share for the scheme and local bodies would share an equal
amount.
During the annual plan 2013-14 it is proposed to implement water supply projects,
solid waste management projects and projects for storm water drainage. Provision is also
included to cover the tender excess, revised project cost, incentive for DPR preparation, and
establishment charges of PIU.

1.7 Swarna Jayanthi Shahari Rozgar Yojana (25% SS)
Outlay: ` 750.00 lakh)

The major objectives of this integrated urban poverty alleviation programme are to
provide self employment or wage employment to the urban unemployed and under employed
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poor by setting up self employment ventures, upgrading the skills of the poor to enable them
to be gainfully employed, to create assets under the wage employment programme which
would be of direct and continuing benefit to the poor, to facilitate a convergence of all anti
poverty initiatives in the urban areas and bring about a direct participation of the poor in the
planning, implementation and follow up of urban poverty programmes.
Objectives
 Addressing urban poverty alleviation through gainful employment to the urban
unemployed or underemployed poor by encouraging them to set up self-employment
ventures (individual or group) with support for their sustainability; or undertake wage
employment.
 Supporting skill development and training programmes to enable the urban poor to
have access to employment opportunities opened up by the market or undertake self-
employment, and
 Empowering the community to tackle the issues of urban poverty through suitable
self-managed community structures like Neighbourhood Groups (NHGs),
Neighbourhood Committees (NHC), Community Development Society (CDS), etc.

The programme is being implemented in all the 65 Urban Local Governments in the
State through the State Poverty Eradication Mission as a part of Kudumbashree. The
components of the programme include: -
 Urban Self Employment Programme. (USEP)
 Urban Women Self-Help Programme (UWSP)
 UWSP – Revolving Fund
 Urban Wage Employment Programme.(UWEP)
 Skill Training Employment Promotion amongst Urban Poor(STEP-UP)
 Urban Community Development Network (UCDN)
 Technology, Marketing and other services (TMOS)
 Information, Education and Communication (IEC)
An outlay of ` 750 lakh is provided in the Budget 2013-14 as state share for the above
activities.

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1.8 Integrated Housing and Slum Development Programme (IHSDP) .

(Outlay: ` 5031.00 lakh)

Integrated Housing and slums Development Programme (IHSDP) is a centrally
sponsored programme aiming at the Holistic Development of Slums in Urban areas. The
basic objective of the scheme is to strive for holistic slum development with a healthy and
enabling urban environment by providing adequate shelter and basic infrastructure facilities
to the slum dwellers of Urban Areas. The programme was formulated by combining the
centrally sponsored schemes of VAMBAY and NSDP.
The scheme is being implemented in 45 Urban Local Bodies of the state excluding
Thiruvananthapuram and Kochi Corporations and Thripunithura and Kalamassery
municipalities which have been covered under the Basic Services to Urban Poor programme.
The major components of the scheme are housing, shelter upgradation, sanitation, roads,
drains, footpaths, social amenities like construction of Primary Health Centres, Anganwadi
buildings etc. Provision for model demonstration projects, slum improvement and
rehabilitation projects, adult education, re-orientational activities, Street lights, recreational
activities etc. are also advisable components under IHSDP. The funding pattern of IHSDP is
80:20 shared by Central and State Governments. The State share (20%) would be equally
shared (10% each) by the State government and the participating Urban Local Self
Governments. Kudumbashree is the Nodal Agency for IHSDP.
An outlay of ` 5031.00 lakh is provided in the Budget 2013-14 as Other Central
Assistance, of which, `453.00 lakh is the State share for the scheme.

1.9 Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

(Outlay: ` 47117.00 lakh)
Cities and Towns of India constitute the world second largest urban system.
Government of India has approved a Mission Mode approach for implementation of urban
infrastructure improvement programme in a time bound manner in selected cities.
The mission entrusted with this task is known as the Jawaharlal Nehru Urban
Renewal Mission.

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The Mission objectives are:
a. Focused attention to integrated development of infrastructure services in the
cities covered under the Mission.
b. Secure effective linkages between asset creation and asset management so that
the infrastructure and services created in the cities are not only maintained
efficiently, but also become self-sustaining over time.
c. Ensure adequate investment of funds to fulfill deficiencies in the urban
infrastructure services.
d. To take up urban renewal programme, ie, re-development of inner cities area to
reduce congestion.
e. For providing basic service to urban poor.
Thiruvananthapuram Kochi Corporations and some adjoining Panchayat andMunicipalities
come under the scheme.
The funding pattern of Thiruvananthapuram Corporation is Government of India
80%, Government of Kerala 10%, ULB 10% and that of Kochi Corporation is Government of
India 50%, Government of Kerala 30% and ULB 20%.
During the year 2013-14 it is proposed to implement water supply scheme, sewerage
scheme, solid waste management scheme, storm water drainage scheme and E-governance
scheme in both cities. It is also proposed to implement Broadway and Ernakulam Market
Heritage & Urban Renewal Project and Traffic and Transportation Scheme for Kochi City
Corporation.
The outlay provided in the Budget 2013-14 is `47117.00 lakh as Other Central
Assistance of which ` 11779.00 lakh as State Share.

1.10 Kerala Sustainable Urban Development Project (Externally Aided Project).

(Outlay: ` 25000.00 lakh)
To address the mounting challenges of Urbanisation, Government of Kerala has
initiated Kerala Sustainable Urban Development Project (KSUDP) with financial support
from the ADB. The KSUDP involves the improvement, upgradation and expansion of
existing urban infrastructure facilities and basic urban environmental services in five
Municipal Corporations of the state. The main objectives of the project are:-
1) Improve and expand urban infrastructure and services

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2) Enhance livelihoods of Urban poor and Improve Urban Management, Planning and
Financing capacity of the Municipal Corporations for sustainable provision of urban
infrastructure and service.
The major components of the scheme proposed for 2013-14 are Urban Road
Transport, Solid waste management, Water Supply and Sewage, Sewerage and sanitation
storm water drainage, Community infrastructure, Livelihood promotion, Administrative
Cost and consultancy charge.
The outlay provided in the Budget 2013-14 is ` 25000.00 lakh.

1.11 Basic Services to the Urban Poor (BSUP)
(Outlay: ` 7203.00 lakh)
Basic Services to the Urban Poor (BSUP) is a component of JNNURM and
implemented through Kudumbashree. Thiruvananthapuram and Kochi Corporations and
adjacent Grama Panchayaths (5 in the case of Thiruvananthapuram and 13 in the case of
Kochi) alone come under the scheme. Thrippunithura and Kalamassery Municipalities are
also included in the City Development Plan of Kochi Corporation. The funding pattern of
Thiruvananthapuram Corporation is 80:20 by central and state governments. In the state
share, the balance fund after deducting the beneficiary share will be borne equally by the
State and Local Governments. For Kochi Corporation, the funding pattern is 50:50 by central
and state governments. Out of 50% of the state share, 30% would be borne by state
government and the balance amount after deducting beneficiary share would be borne by the
Urban Local Body. The major components of the scheme are solid waste management, water
supply, improvement of slums, construction and improvements of drains/storm water drains,
sewerage, drainage, street lighting, health care, Community Halls, Child Care Centres etc for
the urban poor.
The objectives of the scheme are:
 Focused attention to integrated development of basic services to the urban poor in the
cities covered under the Mission.
 Provision of basic services to urban poor including security of tenure at affordable
prices, improved housing, water supply, sanitation and ensuring delivery through
convergence of other already existing universal services of the Government for
Education, Health and Social Security.
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