5. SECTORAL ALLOCATION

5.1 Total plan grant-in-aid includes funds under General Sector, Special Component Plan and Tribal Sub Plan. General Sector Funds includes the Normal Share, Eleventh Finance Commission (EFC) grant and Rural Infrastructure Development Fund (RIDF). EFC grant is given only to Village Panchayats and Urban Local Governments and RIDF is given only to District Panchayats and Block Panchayats. While calculating sectoral ceilings in the General sector allotments under Normal share, EFC grant and RIDF have to be taken together.

5.2 For the following purposes, adequate funds have to be set apart from general sector funds.
(1) Supplementary nutrition now provided to children in the age group 3-6 at anganwadis would continue as per existing norms. In addition, from 01-04-2004 in-obedience of directions issued by the Supreme Court, supplementary nutrition to children in the age groups 0-3 and adolescent girls would be provided as per the norms fixed by the Social Welfare Department.
(2) Funds to ensure uninterrupted feeding and supplementary nutrition as per the prescribed standards should be earmarked by the Urban Local Governments in urban areas and Village Panchayats and Block Panchayats in rural areas in the ratio 2:1.
(3) Compulsory contribution of local governments for the construction of Anganwadies under World Bank project is to be made. District and Block Panchayats can contribute to this as decided by the DPC. Preference may be given to the construction of baby-friendly toilets in Anganawadies.
(4) Upto 10% of the General Sector allocation could be spent for renovation/rehabilitation of hospitals, schools and water supply schemes and minor irrigation schemes where actual provision of water is involved.
(5) Five percent of the total plan size has to be set apart for children, disabled and the aged.
(6) At least 10% of the total plan size should be for Women Component Plan.
(7) Sectoral ceilings under general sector would be worked out as stated below after deducting outlays for anganwadi feeding, supplementary nutrition, Akshaya Computer Literacy Programme, water supply projects taken up under Jalanidhi / Sector Reforms Projects / projects of Socio Economic Unit Foundation, Total Sanitation Projects and solid waste management programmes as part of ‘Clean Kerala Project’. The mandatory minimum amount and ceiling under general sector (i.e. Normal Share, EFC and RIDF taken together) would be:

a. Village Panchayat	Ceiling (%)
ProductiveSector	30 Minimum
Infrastructure Sector	30 Maximum
b. Block Panchayat	Ceiling (%)
Productive Sector	30 Minimum
Infrastructure Sector	30 Maximum
c. District Panchayat	Ceiling (%)
Productive Sector	25 Minimum
Infrastructure Sector	30 Maximum
d. Municipality/Corporation	Ceiling (%)
Productive Sector	10 Minimum
Infrastructure Sector	50 Maximum
Slum Improvement (Including Resettlement of Puramboke Dwellers)	10 Minimum

 

(8) At least one third of the plan grant under productive sector in the general sector should be earmarked for schemes intended for rain water harvesting including roof water harvesting in public buildings, rehabilitation of water sources like ponds, tanks and other water conservation measures and Irrigation Schemes.
(9) If in the Annual Plan 2003-04, there had been any downward deviation from the minimum share of sectoral investment indicated for the productive sector or upward deviation from the ceiling indicated for the infrastructural sector or if any such deviation for the previous year has not yet been fully compensated for, an equivalent amount of compensatory provision must be made in the Annual Plan 2004-2005. Similarly any such shortfall in the SCP, TSP, Plan for special group consisting of children, disabled and the aged and Women Component Plan allocations should also be compensated as described below:-
(i) In the case of Special Component Plan/Tribal Sub Plan, the required allocation should be met out of General Sector Funds.
(ii) In the case of Women Component Plan and Plan for special group consisting of children, disabled and the aged it should be met from the General Sector/SCP/TSP.
(iii) In the case of short achievement in the productive sector it can be made good from the other two sectors.

5.3 Sectoral Classification of Projects

5.3.1 The amount earmarked for construction of buildings for hospitals, veterinary hospitals, schools, Krishi Bhavans, Matsya Bhavans, Anganawadies and industrial units may be included under the respective sectors of development. For example building for Krishi Bhavan, Veterinary hospital, industrial units etc. can be included in the productive sector, building for hospitals and schools in the service sector etc.
5.3.2 Productive Sector: By productive sector is meant projects relating to agriculture, animal husbandry, dairy development, fisheries integrated watershed management including soil and water harvesting, traditional tiny and small industries, production of electricity through stand alone non-conventional energy projects and construction activities related to fish markets, and other traditional markets. Manufacturing of manure from solid waste can also be included under this component.

5.3.3 Service Sector: For the Service Sector, the local government is free to set apart any amount after providing the amount required for the Productive Sector and other mandatory allocations. Local Governments may take up improvement of play grounds, construction of stadium, and sports-related activities under this sector. Construction of buildings for hospitals, schools, anganwadies, libraries, extension of electricity lines etc. will also come under this sector.

5.3.4 Infrastructure Sector: The projects for providing office facilities, furniture etc. to the transferred institutions may be classified under this sector.

5.4 Classification of Projects under Special Category of Funds

5.4.1 Eleventh Finance Commission Award Schemes
A list of projects which are taken up under the EFC grant from all sectors should be prepared and monitored separately. The projects for which EFC grants can be used are:-
(1) primary education
(2) primary health care
(3) drinking water supply
(4) extension of street lighting
(5) sanitation including solid and liquid waste management
(6) setting up of cremation and burial grounds
(7) creation of public facilities
(8) protection and upgradation of common property resources.
The works which are taken up using EFC grants should be charged to that account and progress report sent separately every quarter noting the physical and financial achievements.

5.4.2 Rural Infrastructure Development Fund
In the case of District Panchayats and Block Panchayats the projects under RIDF may be prepared well in advance, according to the guidelines and norms issued by the NABARD.

5.4.3 Special Component Plan
In the case of SCP funds not more than 30% can be spent on infrastructure by any Local Government. There is no ceiling for productive and service sector schemes under SCP.

5.5 Plan for Special Groups/Special Schemes

5.5.1 Women Component Plan
Women Component Plan should get at least 10% of the total plan allocation, including General Sector, SCP and TSP. Assistance to Kudumbashree programmes can be taken up under Women Component Plan.

5.5.2 Plan for Children, Disabled and the Aged
5% of the total plan allocation including General Sector, SCP and TSP size has to be set apart for children, disabled and the aged. Feeding of Anganawadies cannot be charged to this component.

5.5.3 Akshaya Programme
(i) The Akshaya Programme of providing universal computer literacy, which was piloted in Malappuram District, would be implemented in the remaining 13 districts. The scheme is to be implemented by the Village Panchayats, with co-funding from the Block Panchayats and District Panchayats and Municipalities and Corporations for providing computer literacy training to at least one person from every family. Funds for SC/ST beneficiaries may be met from SCP/TSP, if required. Training cost of beneficiaries would be as follows:-
(a) Rural areas - Rs. 80 from Village Panchayat, Rs. 20 from Block Panchayat and Rs.20 from District Panchayat for one person per family.
(b) Urban areas - Rs. 120 from Municipalities/Corporation for one person per family
(ii) The IT Department would provide training at the district level and assist in developing the details of the project and in its implementation.

5.5.4 Sarva Siksha Abhiyan
In the case of Sarva Siksha Abhiyan (SSA) the local government concerned should meet the State share of the scheme from its Plan funds.

5.5.5 Indira Awas Yojana
In the case of Indira Awas Yojana Block Panchayats have to meet the additional fund required to increase the cost up to Rs. 50,000 for housing schemes to Scheduled Castes, Rs. 75, 000 in the case of Scheduled Tribes and Rs.35,000 in the case of others.

5.5.6 Slum Improvement
Municipalities and Corporations have to spend at least 10% of their total plan allocation on slum development, which would also include resettlement of poromboke dwellers.

5.5.7 Solid Waste Management
The urban local governments and Village Panchayats identified under the Clean Kerala Project have to mandatorily prepare a scientific project for Solid Waste Management using General Sector plan funds.
(1) Capital expenditure for the installation of plants, purchase of land.
(2) Purchase of equipments for collection/segregation of solid waste.
(3) Purchase of specially designed vehicles for the transportation of solid waste from the collection points to the disposal sites.

5.5.8. Anti-Poverty Sub Plan
All local Governments should compulsorily have an Anti-Poverty Sub Plan prepared as an independent document. As part of this Anti-poverty Sub Plan all local governments have to prepare a plan for development of destitutes. The mode of preparing the Anti-Poverty Sub Plan and the Destitute Plan is explained in Annexure – 1

5.5.9. NSDP, SJSRY and VAMBAY plans and other anti-poverty projects would be initiated at the level of the Neighbourhood Group (NHG) in Municipalities and Corporations. These plans would be consolidated at the ward level by the Area Development Society (ADS) and further integrated at the Municipal/Corporation level by the Community Development Society (CDS) and forwarded to the relevant Working Groups on Poverty Reduction, SC Development, ST Development and Women and Child Development who will incorporate them with the overall plans. The priorities fixed by the ADS and CDS in SJSRY, NSDP and VAMBAY can be changed only with the prior approval of ADS/CDS.

5.6 Own Fund
The contribution from the surplus of own fund to the plan would be reckoned as not more than 10% above the amount actually made available for the plan projects during previous year as certified by the Secretary. However, if the local governments feel that they have more surplus funds to be used for the plan, they should give attested accounts for the previous year certified by the Secretary. This should cover revenues from Own Taxes, Own Non-tax revenues and General Purpose Grants (even if the amounts have not been actually received from Government) and exclude all dues for various purposes which remain unpaid. This is to avoid over estimation of contributions from local governments leading to plans, which are unimplementable.