Borrow to spend: Planning Board's Economic Review
The Kerala Infrstructure Investment Fund Board (KIIFB) finds a two-page mention in the 507 page document.
Thiruvananthapuram: If there were any hopes that Finance Minister, Dr Thomas Isaac will go for belt-tightening to address the deteriorating state finances, the Planning Board’s Economic Review presented to the Assembly on Wednesday provided answers to which way he might be headed tomorrow.
Quoting the apostle of “cheap money” during war-time Britain, Hugh Dalton, the Review gives short shrift to any attempt to rebalance the budget.
“There is no special sanctity in the period in which the earth revolves round the sun,” it quotes Dalton and goes on to press for spending to be increased.
Tongue firmly in cheek, the team led by Dr. V.K. Ramachandran, states: “A higher deficit needs to be incurred when the state has to recover and build a New Kerala. Fiscal deficit targets can be for a cycle, especially in a situation like one which Kerala is in today”.
This advocacy for fiscal adventurism comes on top of a revelation that the fiscal deficit for 2017-18 (actual) at Rs 26,837 crore is the highest in the state’s history. The revised estimate for 2017-18 had projected the deficit at Rs 22,774 crore.
The Kerala Infrstructure Investment Fund Board (KIIFB) finds a two-page mention in the 507 page document.
Kerala's economic growth rate during the three-year period 2014-17 has been lagging the national average even as the Economic Review claimed that in 2017-18, the State grew 7.18 per cent against 6.7 percent at the all-India level.
Meanwhile, reports from districts say treasury offices have been withholding government payments under Plan and non-Plan heads for the past several days, citing software glitch. But officials say software glitch is an excuse for unannounced Ways and Means restrictions, possibly on account non-clearance of overdraft.
Sources said officers in district officers find the “time out” sign on opening the home page even for transactions under SPARK, an exclusive State Government facility bills and payments. This has put an abrupt stop on most immediate payments, including that for contractors.