THIRUVANANTHAPURAM: State government dropped its earlier plan to present the 2016-17 budget in January, Finance minister Thomas Isaac said. "Owing to post-demonetisation uncertainties, we have decided to present it after the Union budget," he said.
Normally, the State presents its budget in March. However, this time, the State government planned an early presentation of the budget in January to complete all budget-related formalities, including subject committee discussions and passing of appropriation bill, well before the start of the new fiscal.
Apart from demonetisation woes, the government is concerned over the lack of information on Central plan allocation and GST compensation, it is learnt. Earlier, the Planning Commission in consultation with the State Planning Board had given a clear picture on the Central assistance for the State and this had come handy for the state to fix the plan size. However, this time that was not the case.
Niti Aayog that replaced the commission has put an end to the practice of consultations on Central assistance. Hence, the State is now forced to wait until the Union budget to know the exact volume of the funds allotted by Central government.
By the time Union budget is presented, a clear picture will evolve on the GST compensation package as well. According to the Finance Department, commercial taxes revenue in December recorded a negative growth of around 9 per cent.
However, the minister has informed that the salary and pension distribution through treasuries will not be affected by the decision.