Budget an admission of failure: Dr. Thomas Isaac

Thiruvananthapuram: Kerala Budget for the coming year is admission of failure of the government to address the economic crisis looming over the State, CPI (M) leader Thomas Isaac said here on Friday.

Commenting on the Budget, the CPI (M) leader said that till yesterday, Budgets only talked of financial crisis. But, now an economic crisis was at the doors and the government lacked ability to intervene. This was because of failure at resource mobilisation.

He noted that the growth rate in revenues had dropped to 11 per cent. If this was because of economic slump, the projected growth for the coming year could not be achieved. The growth should be at least 20 per cent to overcome the current problems.

Dr. Isaac said that the GDP growth of the State had dropped below the national average.  The Plan expenditure so far this year was only 27.5 per cent and it was not going to be above 50 to 60 per cent by the year-end. This was the result of failure in tax collection which Rs. 30000 crore below estimates. The Additional Resource Mobilisation proposed in the current year’s Budget could not be achieved. The revenue deficit would be at least Rs. 12000 crore this year.

He noted that the government had also failed in carrying out the new schemes proposed in the current year’s Budget. Of additional expenditure of Rs. 1925 crore proposed, only Rs. 92 crore had been spent (for price stabilisation of rubber against proposed expenditure of Rs. 300 crore this year). The Rs. 2000 crore infrastructure fund did not take off.

He said that the announcement of free rations for the poor was not a big deal as rice was already being supplied at Re. 1 a kg.

Budget irrelevant: BJP

Former State president of BJP V. Muraleedharan said in a statement here on Friday that the Budget proposals were irrelevant as the government has little time remaining to implement them.

He protested that the Chief Minister has chosen to criticise the Centre in his speech despite the Centre giving ample assistance to the State during the current year. Financial indiscipline and corruption caused deterioration of the State’s finances.