T’puram: Local self-govt institutions (LSGI) in Keralam failed to utilise more than Rs 3,863 crore allotted to them in 2023-24, with panchayats accounting for the bulk of the unspent funds, a report of Comptroller and Auditor General of India (CAG) tabled in the assembly on Monday revealed.The report on LSGIs for the period ended March 2024 said grama, block and district panchayats together allowed Rs 3,367.92 crore, or 36.86% of their total allocation of Rs 9,135.94 crore, to lapse. Municipalities and corporations failed to utilise another Rs 495.83 crore, or 21.38% of their allocation of Rs 2,318.95 crore.The report flagged shortcomings in fund utilisation, building regulation, slaughterhouse safety, maintenance of public toilets and implementation of civic projects. It also found that local bodies continued to face uncertainty over their responsibilities, with govt departments implementing schemes in areas already assigned to them, weakening the autonomy envisaged for local bodies.The report said spending on sectors such as agriculture, animal husbandry, fisheries and industries remained low. Panchayats spent between 10.28% and 12.67% of their expenditure on productive sectors during 2019-20 to 2023-24, while the corresponding share for urban local bodies ranged from 4.61% to 8.04%.The failure to utilise funds was particularly evident in maintenance allocations. Panchayats left unspent 71.07% of their road maintenance funds and 49.76% of their non-road maintenance funds in 2023-24. In urban local bodies, 67.68% of road maintenance funds and 56.42% of non-road maintenance funds remained unused. The report also noted delays of up to 117 days in releasing development funds, 114 days for maintenance funds and 89 days for general-purpose funds.The audit found that responsibilities assigned to local bodies were not clearly separated from those of govt departments. Although 28 of the 29 functions listed for panchayats had been transferred fully or partially, panchayats had full responsibility for only five and had a limited or no role in 14. Schemes relating to agriculture, animal husbandry, education, health and sanitation, among others, were being implemented in parallel by local bodies and govt departments.This overlap, the report said, could weaken accountability, create the risk of duplicate beneficiaries and undermine the independence of local bodies. Staff shortages and the continued administrative control of govt departments over institutions transferred to local bodies further complicated their functioning.The report also highlighted gaps in the regulation of slaughterhouses and meat stalls. The audit identified 61 unauthorised meat stalls in 19 selected panchayats. In four urban local bodies, 24 unauthorised meat stalls continued to operate without effective action to shut them down.Routine inspections by local bodies and the relevant food safety and pollution control authorities were inadequate, leaving the quality of meat sold unverified. The audit also found that statutory veterinary inspections were not being carried out as required and that essential waste-management facilities were lacking at some slaughterhouses.The construction and maintenance of public toilets, including Take a Break facilities, also came under scrutiny. Despite substantial allocations, several projects remained incomplete or non-functional because of poor planning, unsuitable site selection, lack of water and electricity, and inadequate maintenance arrangements. Even operational toilets in busy public areas and tourist destinations lacked basic amenities or were maintained in unhygienic conditions. The report found widespread shortcomings in the enforcement of building rules by urban local bodies. Building permits were delayed by 44 to 474 days, while an additional fee of Rs 54.37 lakh due on excess floor area was not collected in three local bodies.