THIRUVANANTHAPURAM: Ahead of the Budget on February 3, the UDF has came out with a white paper claiming that the state is in dire financial straits. ‘Kattapurathe Sarkaar’, loosely translated as ‘Non-Working Government’, says the government borrowings have touched a whopping Rs 4 lakh crore.
After releasing the white paper to IUML senior legislator P K Kunhalikutty, Leader of Opposition V D Satheesan questioned how the Kerala Infrastructure Investment Fund Board can implement announced projects worth Rs 70,000 crore with just Rs 3,419 crore in its kitty. The report was prepared by UDF’s subcommittee on finance planning, under the aegis of chairman C P John.
Satheesan warned that the state is passing through a dangerous financial phase where public debt is 39.1% of the gross state domestic product With tax collection down from Rs 71,000 crore to Rs 58,000 crore, Kerala is feeling the heat as GST revenue has become stagnant.
Unleashing his tirade against the LDF government, Satheesan said the financial mess was due to corruption, mismanagement and extravagance. He alleged that the most affected are government staff and pensioners. “The state government is also feeling the pinch of falling crop prices. The SilverLine rail project has become another white elephant. Kerala is in a state of anarchy,” said Satheesan.
The opposition also lashed out at KIIFB, saying its death knell has sounded. The other members of the subcommittee are: N K Premachandran MP, IUML legislator N Shamsudheen, P C Thomas, Mathew Kuzhalnadan MLA, G Devarajan, and K S Sabarinadhan.
PAIN POINTS
Key points highlighted in the UDF white paper on the state’s financial situation