THIRUVANANTHAPURAM: A special package of Rs 24,000 crore and Rs 2,000 assistance for Wayanad rehabilitation were among the demands made by the state at the pre-budget consultation held by the Union government. The state is fiscally stressed due to the cut in central transfers, stoppage of GST compensation and revenue deficit grant, Finance Minister K N Balagopal told the meeting. The curtailing of normal borrowing ceiling added to the state’s financial woes, he said.
The minister said there was a continuous decline in Kerala’s share from the divisible pool - from 3.875 pc during the 10th Finance Commission to 1.925 pc during the 15th Finance Commission.
The state is facing a crisis despite making a commendable increase in its own tax revenue. The share of Kerala’s own revenue in the total revenue expenditure was 63.58 pc, when compared to the national average of only 53.9 pc.
He also requested the Centre to provide Rs 2,000 crore special package for the rehabilitation of the landslide victims in Wayanad.
The affected area is no longer habitable due to natural disasters and potential hazards and hence the state government plans to relocate survivors to a new township.
The rehabilitation plan aims to incorporate global best practices, adhering to the Sendai Framework and “Build Back Better” principles. Balagopal reiterated the state’s demand for a special assistance to the tune of Rs 5000 crore to the Vizhinjam International Seaport Limited.
The minister called for a rethink on the Union government’s new methodology, from 2022-23, for fixing the ceiling on open market borrowing.