Extent of plan cut for current financial year in Kerala to be based on Centre’s package

So far, the government has spent around Rs 700 crore in the health sector to contain the pandemic spread.
Kerala CM Pinarayi Vijayan (Photo | PTI)
Kerala CM Pinarayi Vijayan (Photo | PTI)

THIRUVANANTHAPURAM: Kerala will decide the extent of the plan cut for the current financial year after the Centre’s second stimulus package, which is expected to be announced next week. “We have little choice. Plan cut is inevitable since there is a big shortfall in tax and other revenues. Also, there is additional spending in the health sector and social welfare measures. The revision of plan size largely depends on the release of the GST dues, expected increase in borrowing limit and the Centre’s package,” a highly placed source told The New Indian Express.

So far, the government has spent around Rs 700 crore in the health sector to contain the pandemic spread.

“A large portion of this was additional spending for purchasing protective gear for health workers, testing kits and medicines. Sufficient number of ventilators, PPEs, masks and testing kits are made available on time. Some amount was frontloading the planned expenditure like that spent on the Kasaragod Medical College,” an officer said.

As the state prepares for a third wave of the pandemic, the COVID treatment expenses are expected to shoot up. In addition to this, there are social welfare measures, ranging from the free ration and free food kits to special financial aid and the migrant labourer camps, that cost the state exchequer thousands of crores of rupees.

The government has appointed an expert committee to submit recommendations on additional resource mobilisation and expenditure control measures. It will submit the interim report in a month. The country’s first Covid-19 case was reported in Kerala on January 30. Until Sunday, 489 persons have been cured of the infection.

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The New Indian Express
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