The government will soon put in place a comprehensive strategy to counter the COVID-19-induced slowdown and revive the deflating finances of the State, Finance Minister K.N. Balagopal has said.
The legislator from Kottarakara, who has taken over the crucial portfolio, plans to implement multiple measures to tide over the crisis and restore various pandemic-battered sectors.
“It will be a continuation of the Kerala alternative introduced by the previous Left Democratic Front government that gives maximum impetus to health and welfare. At the same time specific projects to see through the setback and stagnation will be launched,” Mr.Balagopal told The Hindu.
At present, the State’s finances are in a precarious position due to the enormous outlay for healthcare coupled with a considerable dip in revenue. “The pandemic situation has put us in a tough spot and all possibilities to mobilise additional resources will be explored with the help of the public,” he says.
Health will remain top priority while employment generation will be another area of focus and work-from-home initiatives will be promoted. “In the coming days, we will formulate more programmes to improve the economy and protect the livelihood and income of people in different segments, including agriculture.”
Mr. Balagopal says the Centre has thrown the State into a tricky situation by creating hassles in mobilising resources. “When we switched to Goods and Services Tax (GST) from our earlier tax system, the revenue of the State recorded a dip as all major areas of resource mobilisation went to the Centre. Lowering the borrowing limit and not releasing the funds will affect the finances of not just Kerala but all States.”
The Minister says the government will also have to brace for a major crisis when the GST composition scheme for the State expires in 2022 and there will be no option to fill the gap of thousands of crores. “It will create a financial crisis and if petroleum and alcohol are also brought under the purview of GST, it will put the States in more and more distress,” he says.
