Thiruvananthapuram : Boosted by state's post-Covid stimulus packages, the Kerala economy has grown at solid pace of 12.1 percent. The Financial Review report released ahead of the State Budget was presented in Assembly today.
This is the highest annualised growth rate recorded since 2012-13. The government’s stimulus packages helped power through high inflation, energy costs and Centre’s onslaught of slashing down Kerala’s borrowing limits.
In unprecedented move, the Centre stacked up loans availed by state public sector units onto State borrowings. This damning policy, while having longterm ramifications, also sent the State’s public debt rising to Rs 2.2 lakh crores. The Revenue income of State figures at 12.86 percent.
Loans from institutions, including KIIFB, have been tagged to State borrowings, the reason why public debt figure stands inflated. Central policy is now the biggest crisis to state even as the Review Report puts domestic production(GDP) as bright and promising. This is the highest growth rate in ten years, says the report. The document also cites cuts in various Central allocations and grants. The shortfall in Central share stands at 0.82 percent.
