the funds allocated to the District Council of Pamplemousses during the last Budget exercise, he will, for t…
(No. B/64) Mr K. Rookny (Third Member for Pamplemousses & Triolet) asked the Minister of Local Government whether, in regard to the funds allocated to the District Council of Pamplemousses during the last Budget exercise, he will, for the benefit of the House, obtain from the Council, information as to the – (a) quantum thereof requested by the District Council, indicating the – (i) reasons for the non-disbursement thereof; (ii) expected date of disbursement thereof and if same will be disbursed by mid-April 2026, and (b) projects which, as a result, are being kept in abeyance.
Reply: I wish to inform the House that funds are allocated to local authorities, including the District Council of Pamplemousses, under Grant-in-Aid and Capital Expenditure provisions. With regard to part (a) of the question, I wish to inform the hon. Member that pursuant to Section 85(2) of the Local Government Act 2011, as subsequently amended, the District Council of Pamplemousses submitted to my Ministry its Estimates for the Financial Year 2025-26 together with indicative estimates for 2026-27 and 2027-28, amounting to Rs614,527,372, as approved by the Council at its sitting held on 23 April 2025. The different cost components of the above amount comprise, inter alia – staff costs; utilities; hired and contracted services, and maintenance and operational expenses. The hon. Member may wish to note that the estimates were prepared using the 2024-25 budget allocation as baseline, while taking into account several factors, including the increase in cost of goods and services, climate-related challenges, and the implementation of Central Government policy measures. Following consultations between my Ministry and the Ministry of Finance, the Council’s budget for the Financial Year 2025-26 was approved on 31 October 2025 for an amount of Rs401,552,000, comprising – Grant-in-Aid: Rs353,000,000, and Internally generated revenue: Rs48,452,000. The hon. Member may wish to note that the total amount requested could not be approved mainly due to the financial constraints currently affecting the local government sector, which inherited accumulated deficits estimated at around Rs1.2 billion, resulting from previous budgetary reductions imposed on local authorities. Consequently, the District Council has been required to prioritise essential and unavoidable expenditures, namely – settlement of pending liabilities; staff costs; payment of utilities, and contractual obligations. Grant-in-Aid is not disbursed in a single lump sum, but is released in monthly instalments, based on the cash-flow requirements and progress of expenditure of the Council, in consultation with the Ministry of Finance. Accordingly, disbursements are being effected on a regular basis, and the process will continue during the financial year including the period up to mid-April 2026, subject to the Council’s financial requirements and approved budgetary provisions. A mid-term review is usually carried out to revisit the Grant-in-Aid provided to all Local Authorities. The review has revealed that the Local Authorities are facing a deficit of Rs1.127 billion. A request has been made to the Ministry of Finance on 10 February 2026 for the release of additional fund. With regard to part (b) of the question, I am informed that certain capital projects initiated in previous years remain outstanding, including – Construction of a Market at Fond du Sac (land not yet vested); Construction of an Incinerator at Long Mountain (land not yet vested), and Construction of a Multipurpose Complex at Petite Julie (request for increase in project value on two occasions). Out of the 32 projects currently being implemented by the Ministry of National Infrastructure (National Development Unit), 9 have been completed, 14 are in progress, and works orders are to be issued for 6 projects. Funding is not presently available for 2 projects; however, these will be considered in the next financial year. In addition, a consultant has been appointed for the design of the outfall works. My Ministry is closely monitoring these projects in collaboration with the District Council so as to ensure their progressive implementation and completion, in line with Government’s development priorities. Notwithstanding the financial constraints, Government has continued to support community development within the District Council area through funding allocated under Small Community Projects, Small Development Projects (Indian Grant Assistance), Other Infrastructure and Amenities and Major Stand-Alone Projects. Disbursement of funds for these projects is being effected as and when required, in accordance with established financial procedures. A list of projects for which financial clearance has been conveyed for the Financial Year 2025-2026, together with projects proposed under the Estimates 2026-2027 is being placed in the Library of the National Assembly. ANJALAY COOPEN STADIUM – OPERATIONALITY