‘Election promises will be executed despite financial crisis’; Kerala to be changed into silver economy, says V D Satheesan

THIRUVANANTHAPURAM: Chief Minister V D Satheesan said the white paper released by the government is neither a criminal investigation report nor a political document. It is a document intended to inform the public about the true financial condition of the state. He added that the document is significant as the new government is preparing to present its budget.

The chief minister explained the details of the white paper at the press meet through a PowerPoint presentation. He criticized the previous government, alleging that the figures presented in its budget were inaccurate. According to him, out of a planned expenditure of Rs 35,000 crore, Rs 20,500 crore was not actually available. He further stated that the previous budget had been prepared by taking into account a revenue deficit grant of Rs 14,137 crore from the 16th Finance Commission, even though there was no assurance that the amount would be received. The chief minister also dismissed as false the claim that the previous government had left Rs 6,000 crore in the treasury.

When the new government assumed office on May 16, only Rs 2,000 crore remained in the treasury, he said. While funds such as IGST grants and other central allocations may arrive periodically, claiming that Rs 6,000 crore was available despite pressing liabilities was misleading.

He compared the situation to a person earning Rs 50,000 a month who ignores debts and unpaid bills while claiming to have money in hand. He accused the previous administration of leaving the state treasury in a severely strained condition, likening it to someone shutting the door and staying inside without paying the newspaper vendor, milk supplier, or grocery store owner.

The previous government, he said, failed to release the third installment of Rs 1,982 crore due to local self-government institutions and Rs 377 crore owed to Scheduled Caste and Scheduled Tribe students. He questioned why these payments had not been prioritized if Rs 6,000 crore had truly been available.

The chief minister stated that the financial crisis had also seriously affected the health and food sectors. A report indicated that the failure to pay Rs 476 crore to the Medical Services Corporation had affected the supply of quality medicines for children with Type 1 diabetes. The liability under the Karunya Insurance Scheme alone stands at Rs 2,017 crore. He blamed the administration for delaying these essential payments while claiming that sufficient funds were available.

He also alleged that government employees and pensioners had been treated unfairly. Rs 25,000 crore in Dearness Allowance arrears is due to government employees, while pensioners are owed Rs 14,387 crore.

Despite the financial challenges, the government will fulfill its election promises, he said. Free travel for women on KSRTC buses will begin on June 15. The government aims to restore fiscal discipline, transform Kerala into a silver economy, and establish the state as a global destination for healthcare and education. He added that people should be informed about how their tax money is being spent on development projects and noted that Kerala’s social indicators have stagnated and need improvement.