Thiruvananthapuram : The state’s economic crisis is bound to become critical in coming years, if the Centre does not change its policy, said Finance Minister KN Balagopal. If current trend were to continue, the shortfall in central aid in four years will touch Rs. 32,000 crores. The revenue deficit grant from Central Finance Commission this year is Rs 19,891 crore. It would be Rs 15,000 Cr for 2023-24, Rs 4000 Cr next year and then the grants will stop completely. Also, GST compensation will cease from July of next year meaning, the states will stand to lose at least Rs 13,000 crores annually. The slash in states’ tax share is another setback, said the minister.
At the next GST Council meeting, the states will demand an extension for GST compensation for another five years. The centre should remit to states their due share from the taxes collections it makes. Borrowing limits should be raised to 5 percent. Kerala will carry forward KIIFB in robust manner, the minister emphasised.
Government interventions during Onam has been exemplary. Despite ongoing crisis, the government did not shy away from its promises to the people. The government will not sell out public sector units. The government will strengthen the state’s economic front. The Gulathi Institute has begun its study on impact of Covid second wave, said the minister.
Government Initiatives During Onam Exemplary
The government initiatives during Onam proved to be big relief to the public, said Finance Minister KN Balagopal. The government was able to disburse over Rs 9000 crores during the festive days, said the minister during Meet The Press conducted by Kerala Journalists’ Union.
The second economic package for Covid relief, budgeted for Rs 5650 crores, is in progress, said the minister. Other speakers at the event included, the union’s district President Suresh Vellimangalam and Secretary B Abhijit.
