On Monday, the Kerala Assembly advanced two crucial pieces of legislation—the Kerala Municipality (Amendment) Bill 2025 and the Kerala Panchayat Raj (Amendment) Bill 2025—by referring them to a dedicated subject committee. These bills are designed to establish a robust internal vigilance system and bring greater clarity to the reservation of seats for Scheduled Castes and Scheduled Tribes within local governance bodies. While the Opposition, led by the United Democratic Front (UDF), voiced concerns that certain clauses might allow the State government to centralize powers currently held by local bodies, Minister for Local Self-Governments M.B. Rajesh, who introduced the bills, emphasized that their true intent is to promote further decentralization of power.
The proposed amendments outline an Internal Vigilance and Monitoring System responsible for meticulously reviewing documents and all aspects of local administration, including projects and initiatives undertaken by local bodies. This system will also assess whether the development and welfare duties, along with the financial and oversight powers granted to these bodies, are being carried out efficiently and in full compliance with existing laws.
Boosting Transparency with Social Audit
Congress MLA A.K.M. Ashraf raised concerns, suggesting that replacing the traditional performance audit with an internal vigilance mechanism could be a tactic for the government to unfairly target local bodies controlled by opposition parties. In response, Mr. Rajesh clarified that this new internal vigilance system is distinct from the general Vigilance department. He explained that the social audit component would not be government-led but rather implemented through grassroots democratic bodies like ward sabhas and grama sabhas, thereby truly empowering local communities.
Refining Reservation Policies
A key amendment addresses the reservation of seats for Scheduled Castes and Scheduled Tribes in local body elections. A new clause proposes that in instances where the populations of these two groups are equal, the reservation category for the first election will be decided by a draw of lots. For all subsequent elections, the reservation will be determined by ensuring no repetition of previous categories, promoting fairness and rotation.
Furthermore, an amendment explicitly prohibits the construction of any structures or fixtures that obstruct public thoroughfares. This means no individual may erect walls, fences, rails, posts, steps, or any other permanent structures, nor install fixtures that encroach upon public streets, wells, ponds, channels, or drains, or illegally occupy any portion thereof. Should such structures be necessary, written permission and a corresponding fee must be obtained from the local body secretary.
Responding to the ongoing discussions, Mr. Rajesh strongly refuted claims by United Democratic Front (UDF) MLAs that State government funding for local bodies had significantly decreased. He highlighted that during the UDF’s term from 2011 to 2016, the average Plan fund allocation to local bodies stood at 24.11% of the State Budget. In contrast, under the current LDF administration from 2021 to the present, this average has risen to 27.26% of the State Budget, reflecting a consistent annual increase of 0.5% in allocations, in line with the recommendations of the 6th State Finance Commission.