THIRUVANANTHAPURAM: Chief Minister Pinarayi Vijayan on Wednesday admitted that the state has been facing a financial crisis, but added that efforts would be taken to increase revenue collection to fund welfare and development projects.
The CM blamed the Central government for pushing the state into a financial crisis. He termed the move by the Centre a fiscal attack. The implementation of GST and restrictions on borrowing limit have contributed to the crisis, he said. Despite the difficulties the state would not backtrack from welfare projects, he added.
“The state government is facing a financial crisis. We will increase our own revenue generation. We are controlling expenses, enhancing tax collection and using prudent fiscal management to tide over the crisis. But we are going ahead with achieving our development targets while carrying out our welfare activities,” said Pinarayi.
According to him, there is a shortage of Rs 57,400 crore this year from Central funds. The state has been denied borrowing approvals worth Rs 19,000 crore while the GST compensation has been done away with, he said. According to him. the state has to bear 71% of expenses this year.
Pinarayi also defended the expenditure incurred for organising events such as Keraleeyam. According to him, it was not acceptable for a state that keeps high standards in democracy and culture to portray the spending in cultural space as a splurge.
“I want to clarify that the government does not see the expense required to understand the future of our development as an extravaganza,” said Pinarayi. “We move in the opposite direction of fascism which burns books and libraries. We do justice to the future generation with our intervention and investment in culture,” he added.