THIRUVANANTHAPURAM: The UDF spent ten years pointing to Kerala’s fiscal crisis from the opposition benches. Now, it is time for the V D Satheesan-led team to unveil their plan for the state.
The maiden financial blueprint of the chief minister, who also holds the finance portfolio, is likely to announce budgetary control over the Kerala Infrastructure Investment Fund Board (KIIFB). If that transpires, KIIFB will not be able to carry out independent borrowing, as in the past. An announcement on KIIFB’s future is almost certain because the political and financial pressure on the new government is too big to defer. A sweeping change in KIIFB’s functioning was recommended in the white paper released by the new government. The document diagnosing the state’s fiscal problems had laid out a reform agenda. Most of those recommendations are expected to be unveiled.
Measures to expand GST collection are almost certain. Big announcements are also expected on the port and power sectors. The white paper had recommended private and central public sector investment in power generation. A policy statement in this regard is expected. An immediate fiscal challenge the budget must address is a revenue gap of around Rs 20,500 crore.