Govt should seek new ways of income

15,000 crore expenditure during Onam has reportedly emptied the exchequer. For this, apart from borrowing Rs 4,000, the state government has also received Rs 1,683 crore in advance from the Reserve Bank.

Expenses during Onam are not unexpected like expenses during floods. Similarly, the expenses incurred in the month of March when the employees retire can also be foreseen. The expenses increase when the government decides to give away things like welfare pensions together ahead of Onam without distributing them on time. The failure of financial management, which is often unable to anticipate and adjust expenditure, leads to an empty treasury. Just like Onam is a time of expenses, it is also a time of increase in indirect tax revenue as the business doubles.

It is the old fiscal approach that all government revenue should come from taxes. Raising revenue by raising taxes often backfires. Governments that take that kind of proposals from officials invite public discontent. The political leadership should show the will to implement innovative fiscal ideas to increase the revenue of the government. When the financial crisis worsens, the government should not resort to systematic easy ways. Instead, it should try to find new ways to overcome it, seeking advice from independent thinking economic experts. That is what the government should consider before going into an overdraft.

It is commendable that the government was able to pay salaries to those, including the transport employees, during Onam without any reduction. The government should come up with short-term and long-term plans with the aim of generating double the income of the expenditure.

Kerala can become the richest state in India by opening up the means of industrial utilization of the state's black sand wealth. When will such things happen? It remains to be seen who will take the initiative without bothering about political objections. The tourism revenue of the state will double once the inland waterway project is completed. Let's not forget that lessons for new financial take-offs often emerge from severe financial crises.