THIRUVANANTHAPURAM: Even as the Union government has cut down the state’s share of taxes and slashed allocation under various Centrally sponsored schemes, the state has adopted a policy of ‘development with welfare’, Finance Minister K N Balagopal has said.
In an article, Balagopal said the state is engaged in efforts to tide over the fiscal crisis by increasing its own revenue, ramping up tax collection, curtailing additional expenses and adopting prudent fiscal management measures. The minister said that despite the fiscal crunch, the state has not slashed its expenditure but has increased it on the other hand.
The state’s revenue expenditure stood at Rs 1.19 lakh crore in 2020-21 increased to 1.41 lakh crore in 2021-22 and further rose to 1.43 crore in the previous fiscal. The state effected pay revision by increasing its expenditure, Balagopal pointed out. Even while acknowledging that salary and service pension created a huge monthly liability to the government, Balagopal clarified the state has not adopted the policy of curtailing expenses.
“The state does not accept the Centre’s policy that goes against freebies. The state believes in welfare along with development,” the minister said. Balagopal said the second Pinarayi Vijayan government has undertaken unprecedented welfare measures. In the Onam season alone, Rs 18,000 crore from the treasury reached people’s pockets.
All necessary expenses were being met. The functioning of the treasury has not been stalled for even a day and all bills are being cleared on a priority basis, he said. Local bodies were given Rs 2,223 crore in two months. Besides subsidy for rubber farmers, financial assistance was being given for coconut procurement. While Rs 700 crore was allocated to Supplyco for paddy procurement, National Health Mission and Karunya Benevolent Scheme received Rs 50 crore and Rs 60 crore respectively.
KSRTC was given Rs 100 crore this week, taking the total assistance provided over the past two-and-a-half years to Rs 4,833 crore. The government has also allocated Rs 23,350 crore for payment of welfare pension of which Rs 900 crore has been earmarked for this month, the minister said. Criticising the Centre further, the minister said the state expected a deficit of Rs 57,400 crore both in terms of allocation from the Union government and loans.