'Growth of debt reducing; no question of dropping development projects due to financial crisis'

1 min read
Read later

KN Balagopal | Mathrubhumi file photo

Thiruvananthapuram: The rate of growth of debt of Kerala has reduced, the government informed the state Assembly on Tuesday.

The general trend was that the debt of the state would double in five years. This has come down to 88.66 per cent in 2020-21, said minister K Radhakrishnan who was responding to the question of PC Vishnunadh for the finance minister.

The minister said that the total debt of the state as of March 31 was Rs 3,32,291 cr.

The growth of debt and fiscal deficit are due to multiple reasons such as slump in production following Covid-19 lockdown, increase in borrow limit, reduction in the share of the union government, overspending in the social security schemes and salary revision.

The government is not worried about the debt and there is no situation for dropping any development projects, Radhakrishnan said when Vishnunadh asked if the SilverLine semi high-speed rail corridor would be dropped due to the financial crisis.

There is no need to release white paper on the financial situation as demanded by the opposition. The government aims to improve production and in turn improve its fiscal situation. It has increased spending for the same, the minister said.

The actions to collect the tax arrears will be strengthened. The state has been asking the union government to continue the GST compensation for a few more years, he added.

Add Comment
Related Topics

Get daily updates from Mathrubhumi.com

Disclaimer: Kindly avoid objectionable, derogatory, unlawful and lewd comments, while responding to reports. Such comments are punishable under cyber laws. Please keep away from personal attacks. The opinions expressed here are the personal opinions of readers and not that of Mathrubhumi.


1 min

PMLA: Strict regulations put in place for gold transactions above Rs 10 lakh

May 27, 2023

KN Balagopal

1 min

‘One nation, one tax, one tribunal’ concept antithetical to federalism: Kerala FM at GST meet

Feb 18, 2023

Go first flight

2 min

Go First Airlines flight operations to remain cancelled till May 30

May 27, 2023