Thiruvananthapuram: The Kerala government, grappling with a severe financial crunch that forces it to scramble for funds every month just to pay salaries and pensions, may find a “lottery” in the ₹1500 crore expected from the Central government’s PM-SHRI (Prime Minister Schools for Rising India) scheme.
It is widely speculated that the state government, struggling to meet its day-to-day expenditures, is likely to divert the PM-SHRI scheme funds to cover crucial and urgent commitments like salaries and pensions.
Will Diversion Controversies Repeat?
The potential re-routing of funds comes with a sharp reminder of past controversies. Previously, the government faced intense criticism when it was alleged that funds received from the World Bank for flood relief were diverted for other purposes. Similar concerns are now being raised that the PM-SHRI funds, specifically allocated for educational development, will follow the same path of diversion.
Legally, any fund—be it a grant or a loan—received by the state government is first deposited into the Consolidated Fund of the State. The government then utilises this fund to meet its current financial requirements.
When it comes to PM-SHRI related expenditures, a corresponding amount is later sanctioned from the Consolidated Fund. However, utilizing a fund intended for the development of the education sector for essential but unrelated purposes like salary disbursement is expected to draw significant political and public criticism.
