Kerala funds: Welfare good, however rising debt a priority
By Express News Service
KOCHI: As Finance Minister TM Thomas Isaac offered an enormous welfare-oriented funds, the worrying issue is the rising debt burden of the state exchequer. The complete debt excellent of the state, which stood at 29.82% of the GSDP, has elevated to 36.11% in 2020-21, when it comes to the revised estimate. And going by the funds estimate, the whole debt is predicted to shoot up additional to 37.39% in 2021-22.
According to the funds, the whole excellent debt of the state will enhance to Rs 327,654.70 crore, a whopping enhance of Rs 92,023 crore from 2019-20. Of the income receipts of Rs 93,115 crore for 2020-21, Rs 28,026.05 crore or 30.09% will go to paying the salaries of the federal government workers. Another Rs 19,412 crore can be utilised for the cost of pensions and Rs 20,286.27 crore for rate of interest funds. Simply put, practically 73% of the federal government income will go just for the cost of salaries, pensions and curiosity funds.
“The Centre had hiked Kerala’s borrowing limit from 3 to 5% of the GSDP. The sad part is the state is using the extra funds just to pay the salaries, pensions and other welfare programmes,” mentioned Jose Sebastian, an economist and former college, Gulati Institute of Finance and Taxation.
Allocation for PSUs drops to Rs 250 croreT’Puram: The state funds allocation for public sector undertakings did not deliver cheers within the sector because the allocation was not in tune with earlier years. An quantity of Rs 250 crore was allotted for the PSUs altogether within the current funds, whereas it was Rs 299 crore in 2019-20.
The quantity is supposed for the modernisation of expertise and diversification of merchandise. Of the allocation, Rs 57 crore is marked for chemical industries, Rs 25 crore for digital industries, Rs 42 crore for engineering industries, Rs 13 crore for ceramic industries, Rs 57 crore for electrical industries, Rs 28 crore for textile industries, and Rs 21 crore has been earmarked for different industries. An quantity of Rs 35 crore is allotted as working capital.
Increasing debt The complete debt excellent of the state, which stood at 29.82% of the GSDP, has elevated to 36.11% in 2020-21, when it comes to the revised estimate.
The complete excellent debt of the state will enhance to Rs 327,654.70 crore, a rise of Rs 92,023 crorefrom 2019-20
