Decline in state’s growth rate

The Assembly on Tuesday passed the Supplementary Demands for Grants in the Budget for the financial year 2012-13.

Replying to the discussion on demands for grants, Finance Minister K M Mani said that despite the global economic slowdown, Kerala had been able to maintain its financial position comparatively well. He, however, said that the state had registered a negative growth in the agriculture sector.

The overall growth rate of the state has also recorded a two per cent decline, he said. Mani claimed that there had been an increase of 53 per cent in the capital expenditure. While it was 8 per cent of the total expenditure of the state during the LDF regime, it has increased by 10 per cent during the UDF regime.

Reiterating that the financial management of the state under his leadership was perfect, he said that during 2011-12 period the state could spent 31 per cent of its revenues for development expenditure.

He said that the tax collection at check-posts during 2011-12 has reached `669 crore. The Finance Minister said that from now onwards administrative departments could give sanction to projects worth up to `5 crore without having to wait for the Finance Department’s approval.

The paddy farmers have been paid `95 crore so far, Mani said.

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