“Beyond Control Of…”: Kerala Minister On Causes Of Financial Crisis

Thiruvananthapuram:

Kerala Finance Minister KN Balagopal on Tuesday said the state is facing an unprecedented financial crisis and blamed the Centre’s “distorted” financial policies, the outbreak of the COVID-19 pandemic and repeated natural calamities for the poor economic condition. Is.

However, the minister made it clear that the Left government is moving ahead with a ‘clear road map’ and fiscal discipline to overcome the crisis and resolve the issues.

He was replying to a question during the Question Hour session in the state assembly.

Balagopal said, “It is true that the state is facing an unprecedented financial crisis.

There was a decrease of Rs 6716 crore in the Revenue Deficit Grant (released by the Center to the State) during the current financial year as compared to the previous financial year, he informed the House.

However, the minister replied in the negative to a question whether it was found that mismanagement of finances by the state was the reason for the current financial crisis.

Natural calamities, COVID-19 pandemic, distorted policies of the Centre, implementation of GST without much thought, delay in disbursement of GST compensation and reduction in state borrowing limits by the central government are among the reasons that triggered the crisis. Delivered. The current financial crisis in the southern state, he explained.

The minister said the Left government is trying to overcome the crisis through strict fiscal discipline by strengthening tax collection, avoiding unwanted expenditure and keeping it to a minimum.