The state revenues have halved hit by pandemic conditions in the state, According to CAG’s interim accounts, the state revenue stood reduced by Rs 8008.6 cr in the first quarter of current financial year. The figure pertains to revenue between March and May. It is a neat 50 percent slump compared to revenue in the same period last year. On the other hand, revenue expenditure for corresponding quarter rose by 15 percent this time without including the massive healthcare costs that hit the state exchequer unexpectedly.
The budget announced a total revenue of Rs 1,14,636 crore for the state. However, that estimate is likely to reduce to Rs 81,180.5 crore meaning, a whopping slump of Rs 33,455.5 crore in income. The income-expenditure difference or the fiscal deficit rate stands at 139 percent and the deficit growth rate figures at 113 percent.
The borrowing limits were raised from 3 percent of state GDP to 5 percent. The repayments toward borrowings so far stands at 112.9 percent of the budget estimate. It was presumed that an added revenue of Rs 18,087 core would be eventually tapped. From the 2 percent-raise on borrowing limits, one-and-half percent comes tagged with terms, the obliging of which will be rendered difficult in present conditions.
Gst Arrears Rs 7077 cr
There is no clarification forthcoming from the centre with regard to the long overdue GST compensations for states. Kerala has Rs 7077 crore in receivables in GST dues. The Centre is of the view that the states may borrow amounts equivalent to GST dues instead of expecting their receivables. If the states were to move along that proposition, there is fixed borrowing limits that binds such respite.
Talks with organisations today
Meanwhile, government representatives and members from varied organisations will hold talks on Tuesday. Topics including the extension of delayed-salaries will be discussed. Today’s meeting comes after the employees informed the government of their hardships owing to deferred salaries, in the talks held the last time.
A joint committee, comprising representatives from organisations of teaching and service sector, will participate in the meeting slated this afternoon. The meeting, called by Finance Minister Thomas Isaac, will be held via video-conferencing.
