Kerala exploring ways to generate revenues without burdening people, says CM Pinarayi Vijayan

Kochi, Feb 24 (PTI) Kerala is always exploring ways to improve its finances by generating revenues without burdening the people, Chief Minister Pinarayi Vijayan has said and asserted that the state's journey is quite exciting.

Against the backdrop of persisting differences with the BJP-led Centre on various issues, including lower devolution of central funds and inadequate relief measures for Wayanad rehabilitation works, Vijayan took a swipe at the central government saying "Kerala is being left in the lurch even during disasters".

In an interview to PTI, the strongman of the ruling Left Democratic Front (LDF) also said the state wants to attract more investments.

The two-day Investor Kerala Global Summit (IKGS), which concluded on February 22, attracted expressions of interest for investments worth Rs 1.53 lakh crore, with the government emphasising that all steps are taken to ensure that there are no cobwebs of procedural delays and red tapism.

"We are always exploring ways to improve our finances, especially in terms of generating revenue without burdening the people," the chief minister said, adding that the state's "growth journey is in fact quite exciting".

Kerala, which accounts for 2.8 per cent of the country's population and 1.2 per cent of its land area, contributes almost 4 per cent to the national GDP.

According to Vijayan, the state's GSDP is growing at almost 12 per cent at current prices.

"The state's per capita income is 60 per cent higher than the national average. As per Budget estimates for 2024-25 at Rs 103,239.97 crore, our own revenue is almost three times that of our share in central taxes and grants, which is Rs 35,415.2 crore," he said.

Kerala, where the LDF is in power for the second straight term, has been flagging issues about declining funds from the Centre.

"As far as Finance Commission devolutions go, Kerala's share has declined from 3.875 per cent during the 10th Finance Commission to 1.925 per cent during the 15th Finance Commission. The trend is clear. Despite this steady decline, Kerala is being left in the lurch even during disasters," the chief minister said.

Last year, Wayanad was devastated by floods and landslides that also claimed many lives. The state had sought a Rs 2,000 crore rehabilitation package. The Centre has only decided to extend a Rs 529 crore interest free-loan for the rehabilitation work while the state government is hopeful of getting the package.

Sharing numbers, he said in 2023-24, the state's own revenue was Rs 90,674.97 crore and the share in central taxes and grants was merely Rs 33,811.18 crore.

"That is, in our total revenue of Rs 1,24,486.15 crore, state share was 73 per cent while central share was a paltry 27 per cent," the chief minister said.

In 2020-21, Kerala's own revenue was Rs 54,988.15 crore and its share of central taxes and grants was Rs 42,628.68 crore. Out of the total revenue of Rs 97,616.83 crore, the state's share was 56 per cent and the central share was 44 per cent.

At the inauguration of the summit on February 21, the chief minister had said the government has ensured no investor coming to Kerala has to face the cobweb of procedural delays and meet the barriers of red tape. "We have made major strides in simplifying procedures as regards investments".

On recent comments by Congress MP Shashi Tharoor appreciating the strides made by the LDF government in the startup space that triggered a political controversy, Vijayan told PTI that what Tharoor has said is based on facts.

"It is about Kerala, not about any political party or government. All Keralites should feel proud of our growth amidst heavy odds. There is no need to give any political colour to his words," Vijayan said. PTI RAM TRB

Source: PTI