THIRUVANANTHAPURAM: The Economic Review, tabled along with the budget, warns of immediate price rise because of high fuel prices and rupee exchange rates. According to the document, the inflationary pressures could unsettle the lower than national average rate prevailing in the state in 2021.
It also explains the limited role of the state in absorbing shock according to the present division of constitutional powers. While the demand side interventions are beyond the scope of the state, the government could make supply side interventions to control the prices of essential commodities, the survey found.
The review dwelled on the adverse impact of Covid, which pushed down the growth of the Gross State Domestic Product (GSDP). The growth in Gross State Value Added (GSVA) declined from 2.19% in 2019-20 to -8.16% in 2020-21. The slowdown is mainly due to the adverse impact of Covid. A quick estimate of GSDP also showed a negative growth.
The review document lays down challenges before the state in terms of unemployment accentuated by the Gulf returnees who lost jobs. Over 70% of the 17 lakh expatriates who returned during the pandemic have lost their jobs. The economic review highlighted the need to focus on post-Covid recovery efforts to revive the economy. It also gave special emphasis on the climate change impacts that have affected growth patterns and pose a serious threat to sustainable development in the state.
Trouble
Per capita GSDP in Kerala was Rs 1,46,910 in 2020-21.
Unemployment rate was 10% in 2019-20.
17 lakh non-resident Keralites returned during Covid (72% lost jobs)
A smooth ride
Rs 1,207.23 cr Roads and bridges. Of this, Rs 6.2 crore allocated for development and maintenance of major district roads
Rs 200 cr De-congesting select junctions. 20 junctions that experience heavy traffic blocks in state will be identified. Detailed projects to be prepared to develop them
Rs 1,500 cr Development of Thiruvananthapuram-Angamaly MC Road and Kollam-Shenkottai stretch
Rs 200 cr: Six new bypasses. Land for roads would be identified after traffic surveys
Rs 1,000 cr Land acquisition for Outer Ring Road in T'Puram. Project is estimated to cost Rs 4,500 crore, of which state has committed to bear 50 per cent cost of land acquisition.