The Left Democratic Front (LDF) has intensified its campaign against the United Democratic Front (UDF) government over the alleged reduction in development funds for local self-government institutions, with the Kannur district panchayat claiming that ₹12.73 crore has been cut from its development allocation, disrupting welfare schemes and development projects.
The LDF district committee has announced marches to local body offices on August 1 and 3 to protest the alleged reduction in Plan funds.
The district panchayat’s governing body unanimously passed a resolution seeking the immediate restoration of funds, stating that the financial cuts had jeopardised development and welfare activities across the district.
The district panchayat alleged that the government cut ₹3.61 crore from projects already included in the 2026-27 Budget and approved by the District Planning Committee. It also claimed that ₹9.11 crore, sanctioned as Finance Commission Grant for 2025-26, which had been included in the new Budget, was withdrawn, taking the total cut to ₹12.73 crore.
The district panchayat further pointed out that despite the present governing body completing four months in office, the first instalment of development funds for the current financial year had not been released. It also said that the third installment of ₹16 crore due for the previous financial year was withheld, citing the model code of conduct, leaving development and welfare programmes severely affected.
Presenting a resolution adopted unanimously by the district panchayat, vice-president T. Shabna urged the State government to restore the development fund cuts. District panchayat president Binoy Kurian said the financial crisis had disrupted welfare schemes, including the distribution of motorised tricycles for persons with disabilities, the supply of medicines to hospitals, and the payment of employee salaries.
He warned that the reduction of the Finance Commission Grant would also affect sanitation and waste management activities and delay development works scheduled for the first four months of the financial year. Meanwhile, the LDF district committee alleged that the UDF government had drastically reduced Plan funds for local bodies.
The LDF claimed that while the previous government’s final Budget had earmarked ₹692 crore for Local Self-Government institutions, the UDF government reduced the allocation to ₹177 crore, amounting to a cut of ₹515 crore.
It alleged that the reduction had pushed local bodies into a financial crisis, leaving little scope for development after meeting mandatory expenditures such as the LIFE housing scheme and honorarium for anganwadi workers.
Published – July 24, 2026 08:46 pm IST
