"How long can the government continue by borrowing?": No shortage of anything in state, replies Finance Minister

THIRUVANANTHAPURAM: The opposition said in the Assembly that Kerala is facing an unprecedented financial crisis and asked how long the government can continue by borrowing and misappropriating money like this. However, Finance Minister K.N. Balagopal replied that despite the Centre cutting everything, there has been no shortage of anything in the state, including salary distribution, and asked whether an Onam like this has been celebrated in the recent past. The urgent motion moved by the opposition, citing cuts in plan funds and increasing arrears and debt, was withdrawn after two hours of discussion in the House.

Minister Balagopal began his reply by asking, "Do you think that I view the financial sector as my ancestral house issue?" “The opposition, which is criticizing the introduction of treasury control in the state, should not forget the time when the Reserve Bank of India ordered the closure of the treasury in 2002 during the UDF regime. Introducing and withdrawing treasury control is not a new thing. However, things are being carried out without any problems. Had GST not been introduced, Kerala would not have had a single rupee in arrears and would have had a surplus. Where a central grant of Rs 33,000 crore was received in 2021-22, the current financial year received only Rs 6,000 crore. Kerala is now able to survive because of the increase in non-tax revenues. If it were not for this government, the Vizhinjam port would not have existed. The government will not bow to those who try to evade taxes. Is there a situation where any contractor is not getting money? Local bodies would be paid before the elections,” the Finance Minister said.

Mathew Kuzhalnadan, who moved an emergency resolution, said that tax revenue in the state has fallen sharply. He also said that only 21% of the Rs 42,000 crore plan fund has been spent even after six months. Opposition leader VD Satheesan said that shocking information regarding GST evasion will be revealed.