Thomas Isaac to raise bailout demands at FM meet
Dr Isaac had sent a memorandum and been awaiting an appointment with Mr Jaitley.
Thiruvananthapuram: Close on the heels of the World Bank-Asian Development Bank team returning from the havoc assessment tour of 10 districts, Finance Minister Thomas Isaac is meeting Union Finance Minister Arun Jaitley in New Delhi on September 22 with two key requests- sanction for 10 percent additional cess on SGST and raising the borrowing limit to 4.5 percent and 3.5 per cent this and next year respectively.
Dr Isaac had sent a memorandum and been awaiting an appointment with Mr Jaitley. The State is preparing a detailed sector-wise rehabilitation package, due to be over in less than a week.
A Central team is expected here on October 1 to discuss the '4,796-crore aid sought by the State Disaster Management Authority on eligibility norms under National Disaster Response Fund.
The total loss on account of floods and landslides has been revised to Rs 40,000 crore, incorporating micro, small and medium enterprises and petty traders.
The expenditure on relief, compensation, repair and maintenance works out to Rs 5,000 – 6,000 crore, which the state has to generate additionally, or leave the revenue deficit to rise to unacceptable levels.
Dr Isaac’s stand before the GST Council and the Empowered Committee of Finance Ministers has been for federal flexibility, allowing States to have a band within the SGST rates to mobilize resources to meet exigencies like disasters.
The plan is to impose 10 per cent cess on SGST of all commodities consumed in Kerala as special revenue mobilization for rehabilitation and flood- affected work. This has to be discussed at the next GST Council meeting.
The state also expects an additional '20,000 crore expenditure on the capital account to rebuild roads, buildings, bunds and sea protection. Discussions are on with multilateral agencies (WB and ADB) with the concurrence to Union Department of Economic Affairs.