LDF claims Kerala fiscal position improving, UDF says state is debt-ridden

Thiruvananthapuram, Feb 12 (PTI) The Kerala government on Wednesday stated in the Assembly that the state's fiscal position was improving, a claim questioned by the opposition Congress-led UDF.

Replying to the three-day-long discussions on the budget for the financial year 2025-26, Finance Minister K N Balagopal claimed that Kerala has created history in relation to various fiscal indicators, including its budget revenue and expenditure, which have crossed Rs 2 lakh crore.

He said this increase was despite the Centre cutting down the state's borrowing percentage and allocation of various funds and grants to it.

The minister was replying to Leader of Opposition in the Assembly, V D Satheesan's comment that the present government was the first in Kerala's history which pushed the state into a huge debt trap.

Satheesan, during the discussion, further said that the average growth of the state in the last three years was just around 6.7 per cent, the tax collection was improper and the planned expenditure for 2024-25 was cut by 50 per cent or more in all departments despite which the revenue and fiscal deficit rose in this financial year.

Taking a dig at the Left government, the opposition leader said that in the face of shortage of funds and allocations from the Centre, the plan B of the LDF administration was "plan cut".

He claimed that the funds allocated to the departments for various welfare schemes was not enough to clear the arrears of the previous year.

Opposing the government's budget proposals, the opposition leader claimed all the fiscal indicators of the state were "shocking" and showed its deplorable financial status.

Dismissing Satheesan's allegations as "baseless", Balagopal said that despite the Centre-imposed financial restrictions, the state continued to meet its essential expenses and no welfare measures were cut.

He denied that any plan expenditure was cut and said that till the start of February it was 63 per cent with more than a month to go before the financial year ends.

For local bodies, the planned expenditure has crossed 68 per cent, he added.

Balagopal said that big changes were taking place across Kerala with projects being formulated to make the state financially stronger, increase employment avenues and strengthen the agricultural, educational and health sectors.

He also said that the Left government has put forward a strategy of ensuring maximum development by considering all the constituencies in the state as one and giving equal consideration to all of them.

The minister also announced some 30 new proposals as part of the budget which included clearing of the outstanding dues out of the Rs 7.5 crore allocated for relief of farmers affected by natural disasters, a separate plan for the Vilangad natural disaster relief work in Kozhikode district and implementing a faceless adjudication system to improve the functioning of the Taxpayer Services Division and the Audit Division of the GST department.

Balagopal also said that no scholarships for the minorities and the marginalised will be stopped or cut down.

He also said that the government's stand was to first pay the arrears of the welfare pensions and then consider increasing the minimum support price of rubber and paddy. PTI HMP HMP KH

Source: PTI