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LOCAL GOVERNMENTS • Grama Sabha/Ward Sabha consultation with stakeholders
• Preparation of draft plan proposals by the functionary groups with the recommendation of

Grama/Ward Sabha

• Discussion of the draft plan in development seminar
• Preparation of development report and vision document
• Strategy setting by the Panchayat Committee
• Prioritisation and resource allocation by the Local Government
• Plan finalisation by Local Government
• Vetting of Plans (including Technical Approval)
• Approval by the District Planning Committee
• Plan implementation

Grant-in-Aid to LGs

8.4 Financial devolution is the most important element of Kerala’s decentralization process, which
has enabled the LGs to receive the required resources from the state’s plan allocation as well from
its own revenue for implementing own schemes as well as transferred schemes. The fund provided
from the state plan to LGs is in the form of untied plan grant for planning and implementing projects for
local development. LGs have the freedom in formulating and implementing schemes after deciding
their priority subject to a general overall framework. The allocations of development fund to LGs are
being done in three categories - General Sector, Special Component Plan (SCP) and Tribal Sub Plan
(TSP)

Special Component Plan and Tribal Sub Plan under Decentralisation

8.5 The Special Component Plan (SCP) and Tribal Sub Plan (TSP) are intended to provide special
protective measures to safe guard the interest of scheduled castes and scheduled tribes. As one of
the major objectives of decentralized planning is to improve the socio-economic status of SCs and
STs and enhancing the quality of life, conscious efforts have to be made at Government as well as
LG’s level, to the effective implementation of SCP/TSP.

8.6 The allocation of Plan fund to SCP and TSP from State Plan outlay is done according to the ratio
of population of SCs and STs to total population of the State. Out of the total SCP/TSP Plan outlay, a
certain percentage of funds are earmarked to LGs for implementation of schemes under decentralized
planning. The projects under the SCP/TSP can be categorized into two viz the beneficiary oriented
schemes and infrastructural development schemes. The outlay and expenditure for each category
is shown in Table 8.1

Table 8.1 (` in crore)
SCP & TSP Allocation of the LGs

SCP TSP Total

Year Alloca- Expen- Alloca- Expen- Alloca- Expen-
tion diture* tion diture* tion diture*

2009-10 535.99 518.43 80.51 79.78 616.50 598.21

2010-11 589.49 484.03 88.47 78.28 677.96 562.31

2011-12 660.23 697.69 99.09 93.07 759.32 790.76

2012-13 739.46 661.58 110.98 99.65 850.44 761.23

2013-14 828.20 882.49 124.3 136.89 952.50 1019.38
Source: Appendix IV of the Budget & Information Kerala Mission 2014

*includes opening balance.

Kerala State Planning Board