Kerala

Isaac: Plummeting tax revenue may force 30% cut in plan funds

A directive has been issued to the departments to prioritise their projects to avoid unnecessary expenses.

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THIRUVANANTHAPURAM: Finance Minister TM Thomas Isaac said the state’s tax revenue is plummeting due to the ongoing economic slump and the erratic tax collection. Summing up the discussion on the supplementary demands for grants in the 2019-20 Budget in the assembly on Tuesday, he said a 30 per cent cut in plan funds is anticipated, though it has not been officially declared.

A directive has been issued to the departments to prioritise their projects to avoid unnecessary expenses. Against the estimated total receipts (excluding borrowings) of Rs 1,15,690 crore for 2019-20 fiscal year, a deficit of Rs 19,463 crore is being expected.

Against the estimated total receipts (excluding borrowings) of Rs 1,15,690 crore for 2019-20 fiscal
year, a deficit of Rs 19,463 crore is being expected.

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