Kochi, 04 Oct (H.S.): Financial experts have called for merging government-controlled institutions in Kerala, warning that overlapping functions, political appointments and recurring support for loss-making enterprises are placing a heavy burden on the state’s finances.

The demand comes as discussions continue over senior appointments to boards and corporations. According to official figures cited in the report, Kerala has 131 public sector enterprises, 16 welfare fund boards, eight commissions and three development authorities functioning under various departments.

Experts argue that restructuring institutions with similar responsibilities could reduce administrative expenditure, prevent duplication of work and improve service delivery. Concerns have also been raised over appointments allegedly driven by political considerations and the reappointment of retired officials.

Centre for Development Studies director C. Veeramani said several boards and corporations performed similar functions, resulting in overlapping responsibilities and higher costs.

He argued that the proliferation of government-linked institutions had brought limited benefits to the state. Personal interests of politicians and officials, along with efforts to accommodate preferred appointees, had contributed to their expansion, he alleged.

Bringing institutions with common functions under a single organisational structure would help save taxpayers’ money and improve efficiency, Veeramani said.

Former Chief Secretary Jiji Thomson said most public sector enterprises in Kerala were making losses. Of more than 120 such enterprises, only about 25 were functioning at full capacity, he said, adding that very few were profitable.

Merging boards and federations operating under the same department could eliminate unnecessary appointments and expenditure, Thomson suggested.

Economist B.A. Prakash said political appointments and unnecessary committees were weakening the state’s financial position.

Several loss-making institutions depended on government loans to continue operating, he said, describing such assistance as a waste of public money.

The experts’ recommendations centre on consolidating overlapping bodies and reducing recurring expenditure while improving the effectiveness of government-supported institutions across Kerala.

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Hindusthan Samachar / Arun Lakshman