Public debt: Every Keralite in debt of one lakh rupees

THIRUVANANTHAPURAM: The public debt of the state is skyrocketing. At present it is three and a quarter lakh crore. The reasons are Covid, lockdown and the decline in investment in the development sector and tax revenue . When the Rs 63,000 crore through KIIFB is added, the debt will reach Rs 4 lakh crore. With this, every citizen of Kerala will be in debt of one lakh rupees.

Last year, Kerala borrowed Rs 38,189 crore. At least Rs 3,000 crore a month is borrowed. During the UDF rule in 2011-16, it was borrowing Rs 1,000 crore per month. It rose to Rs 2,000 crore during the last Left Front rule and Rs 3,000 crore during the Covid period.

This amount is borrowed to cover the revenue deficit due to low revenue and high expenditure. Up to five per cent of the total income can be borrowed in this way. After that it is not possible to borrow for development purposes. This is where KIIFB'S relevance to being able to borrow outside the budget comes into play.

State's public debt

In 2011, the UDF When the government came to power -Rs 78673.24 crore

When the LDF government came in 2016, it was -Rs 157370 crore.

When the LDF government took office in 2021, it was Rs 327654.70 crore

If the debt increases

Loan ratings from inside and outside the country will go down. Interest rates on loans will go up. The amount received will be reduced.

The annual repayment liability will increase. Total income will decrease.