Fund shortage could hit plan implementation: Kerala Planning Board vice-chairman

State Planning Board vice-chairperson V.K. Ramachandran on Friday underlined the importance of planning in the State’s development, even as he indicated that paucity of funds could affect plan implementation.

“We cannot finish the plan, because we have insufficient funds. That is a reality,” Prof. Ramachandran said while addressing a press conference in connection with the upcoming three-day ‘Vision 2031: An International Conference on Development and Democracy’ in Thiruvananthapuram.

He went on to add that planning assumes greater significance when there is shortage of funds, given the need for scientific, optimal utilisation. Prof. Ramachandran opined that no other State in India in the 21st century has changed so much in ten years as Kerala has – despite the financial crisis. “I think that is because of good economic policy,” he said.

Prof. Ramachandran said that Kerala’s Plan size has not diminished, although it has perhaps not maintained the same growth rates as in the past under different economic conditions and Centre-State relations. Further, Kerala has since created new institutions for infrastructure development such as the Kerala Infrastructure Investment Fund Board (KIIFB), he pointed out.

The Kerala government’s decision to retain the Planning Board has been a “very important” one, he said. “I think it has been successful. If the economy has improved in the last ten years, plannng has been an important aspect in this process,” he said.

Prof. Ramachandran also added that the 16th Finance Commission’s decision to abolish revenue deficit (RD) grants to States would mean an overall reduction in Central transfers.