Thiruvananthapuram, Wednesday, January 26, 2011: Following the recommendations of the Fourth State Finance Commission, local self-government institutions in the State will get Rs 4,160 crore in 2011-12, a one-third increase from the allocation for 2010-11.

Local Administration Minister Paloli Mohammed Kutty and Finance Minister T M. Thomas Isaac told mediapersons that the new allocation comprised Plan funds of Rs.2,750 crore, a general purpose grant of Rs.617 crore and a maintenance grant of Rs.793 crore.

The commission, headed by M.A. Oommen, economist, which submitted its first report to the Governor on Saturday, had recommended that 30 per cent of the Plan funds of the State should be devolved to the local bodies and the allocation should not go below 25 per cent.

The government decided to grant 25 per cent for 2011-12 and then steadily increase the devolution in the subsequent years. The general purpose grant had been fixed at 3.5 per cent and the maintenance grant at 4.5 per cent. These components would be enhanced in the coming years. By fixing the minimum at 25 per cent, the fourth commission had ensured that the allocation could not be slashed beyond a limit.

The Ministers said the devolution recommended by the commission had been taken up immediately considering its significance in the preparation of the budget. The other recommendations of the commission for administrative changes and increasing the quality of governance would figure at the next Cabinet meeting.