Despite easing of Covid curbs Kerala still in deep financial crisis, suggests AG’s report
Thiruvananthapuram: Kerala is getting out from the clutches of Covid-19 crisis. However, the state is still in deep financial crisis, despite easing Covid curbs.
When the first half of the financial year is complete, revenue deficit is at 150.66 per cent than expected. While money deficit which determines capacity to take loans is at 110.38 per cent.
The revelation comes from Accountant General’s temporary report for the month of September, which shatters the hopes of the state.
From April to September, the debts and liabilities of the state is Rs 37,783.61 crore. From the primary estimates, last year's total debt was at Rs 38,189.85 crore. It suggests that debts and liabilities of this year has almost reached the previous year’s level within six months. The expense spent for meeting interest payment is already at Rs 1438.25 crore.
During this period, expenses on pension and salaries based on pay revision skyrocketed. Rs 25,684 crore has been spent on salaries, while Rs 14,600 crore for pension. Notably, the same expenses last year were respectively at Rs 28,763 crore and Rs 18,942 crore.
Also, revenue deficit till September is at Rs 30,282.40 crore. Last year, it was just RS 23,256 crore. Similarly, money deficit which was Rs 38,189.85 crore during the last year is at Rs 37,783 crore in the first six months of this year.
There is growth in income from many sectors when compared to the previous year. However, expenses are in tandem with that. During the period, 28.94 per cent of expected GST for the period has been collected. Last year during the first six months, it was only at 21.44 per cent.
Revenue expenses increased from Rs 22,600.80 crore to Rs 22,937.17 crore. Capital expenses increased from Rs 5087.08 crore to Rs 6084.55. Social spending rose from 42.58 percent to 52.48 percent.