Ward development funds of councilors unutilised, says study
C Shivakumar
Chennai:
The utilization of ward development fund by councillors in Chennai Corporation has dwindled with the rise in allocation of funds during the last four years, according to a study conducted by Transparent Chennai.  

The study pointed out that while there has been a significant rise in allocation of ward development fund from Rs 7 lakh in 2007-08 to Rs 15 lakh in 2008-09, Rs 25 lakh in 2009-10 and Rs 30 lakh now but the utilization of the funds decreased significantly with each increase.

Interestingly, in 2007-08 when the allocation was Rs seven lakh, 70 per cent of funds were utilized by the councilors. However, in 2008-09 when it was raised to 15 lakh, there was a fall in utilization as only 63.50 per cent of funds were used. Similarly in 2009-10, when the fund was raised to Rs 25 lakh, a councilor on an average used only 40.60 per cent of funds, said the study.

Surprisingly, the Mayor’s Special Development Fund also received a sharp increase in allocation from Rs 50 lakh in 2007– 08 to Rs 2 crore in 2009 – 10. But spending from the fund has been dismal, and steadily decreasing, both as a percentage of the total and

in actuals. In 2009 – 10, only a mere 4.9 per cent of the funds were spent. Although the numbers are small relative to the total budget of the city, the Mayor could have still done a better job of spending it.

The systematic under-utilisation of funds by both the councillors and the mayor suggests that either a concerted effort is needed to educate elected representatives and residents about this money, or that the process for spending the money needs to be made simpler, the study observed.

Ward development Fund      

Year           Allotment        Expenditure             % used        Allotment per councilor

2007-08    Rs 1085 lakh     Rs 760.28 lakh          70%           Rs 7 lakh

2008-09    Rs 2325 lakh     Rs 1476.36 lakh        63.50%      Rs 15 lakh

2009-10    Rs 3875 lakh     Rs  1573.88 lakh       40.60%      Rs 25 lakh   

Mayor’s Special Development Fund:

Year                Allotment                    Expenditure                % used    

2007-08           Rs 50 lakh                  Rs 18.36 lakh             36.72%

2008-09           Rs 50 lakh                  Rs 12.62 lakh             25.24 %

2009-10           Rs 200 lakh                Rs 9.71 lakh               4.86%

Source: Transparent Chennai