THIRUVANANTHAPURAM: The state’s public debt rose from Rs 1.5 lakh crore in 2016 to Rs 2.5 lakh crore in three-and-a-half years, says a white paper on state finance brought out by the opposition UDF.
The document said the per capita public debt increased from Rs 46,078 to Rs 72,430 during the period. The government could not achieve any of the goals set for fiscal prudence. Treasury restrictions have affected development projects. The treasury functioning is now limited to salary and pension disbursals. The growth rate of tax revenue was negative. Fiscal responsibility goals could not be achieved. Revenue deficit increased and fiscal deficit went out of control, said the paper.
The annual plan was cut short by 20 pc in the last fiscal and 30 pc in this fiscal. The capital expenditure came down drastically. The opposition said the government had committed serious lapses in revenue mobilisation. Government did not collect the Rs 5,000 crore tax arrears. The amnesty scheme for VAT arrears was a flop. As many as 40,000 files pertaining to VAT, KGST, CST and luxury tax arrears are pending with the Taxes Department. Opposition leader Ramesh Chennithala, who released the white paper here on Friday, said the finance minister’s office was under external control, hinting that the chief minister was controlling his office.
Recommendations
The opposition asked the government to bring in a system to collect tax arrears. Timely decision should be taken on appeals and coordinated efforts be taken with the Revenue Department on revenue recovery cases. New tax sources should be identified in the GST services sector. A mission should be announced to collect the Rs 13,000 crore GST arrears, demanded the opposition.Finance Department should control extravagance and wasteful expenditure. The opposition also called for austerity measures, a debt management plan and budget performance audit.