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Stopping the drain: Curbing state's white elephants

Stopping the drain: Curbing state's white elephants

Kaumudi Online 1 week ago
CM VD Satheesan

The government's money comes from the taxes paid by the people. It is important to ensure that this money is not wasted.

With that objective, the state cabinet recently decided to implement five administrative reform measures at the earliest. While explaining the cabinet decisions at a press conference, Chief Minister V D Satheesan highlighted one major issue- the existence of 591 "white elephant" institutions that continue to consume public funds without serving any significant purpose. The term "white elephant" refers to something that is expensive to maintain but offers little or no benefit. A look at the hundreds of boards, corporations and committees under the state government is enough to understand why the term is being used. According to the Chief Minister, these 591 institutions, which currently have very little practical use, require around Rs 19,000 crore every year just to pay salaries. This has raised serious concerns about the burden they place on the state's finances.

Historically, some emperors are believed to have kept white elephants as symbols of wealth and prestige, even though they served no practical purpose. That is how the term came to describe government institutions that continue to exist despite having little value. The government's proposed Special Asset Registry aims to review the usefulness of such institutions. Based on the assessment, institutions that are no longer needed could be closed, merged with similar organisations, or integrated into the departments concerned. The first step will be to create a comprehensive record of all government assets through a dedicated online portal. The issue is particularly serious considering that Kerala borrows around Rs 39,000 crore every year, while these institutions alone account for more than half that amount in salary expenses.

The salary bill is only one part of the cost. These institutions also spend public money on office rent, official vehicles, allowances, travel expenses and, in some cases, foreign trips by senior officials. Together, these expenses add up to a significant financial burden. Many of these organisations were created years ago for specific purposes. In several cases, those objectives have already been achieved. However, since there was no fixed timeline for their closure, they have continued to function and consume public funds. Some have also become comfortable postings for officials seeking less demanding assignments through deputation.

The government's reform plan aims to put an end to such unnecessary expenditure. The Chief Minister mentioned organisations such as the Literacy Mission, Rebuild Kerala Initiative, AIDS Control Society, Nirmithi Kendra and Bookmark among those that will be reviewed. These institutions were established to meet genuine needs at the time. However, what matters now is whether they continue to serve a meaningful purpose. If they are performing only limited functions, there is nothing wrong with winding them up and transferring their responsibilities to the respective government departments. The money saved through such reforms can be used to improve administrative efficiency and support development projects. At the same time, the government should carefully address employment-related issues so that the reforms can be implemented without creating unnecessary legal disputes.

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