THIRUVANANTHAPURAM: The Economics and Statistics Department’s 2021-22 report says that Kerala’s Gross State Domestic Product grew by 12% after Covid. Former Finance Minister, Dr. TM Thomas Isaac said that the growth is due to capital investments by taking debt and KIIFB.

Due to Covid the growth rate had shrunk to 8.43% in 2020-21. In 2019-20 it was only 0.9%. From there the growth rate reached 12.7%. This is more than the national average. The state’s per capita income is Rs.1.43 lakhs. The national average is only Rs.0.91 lakhs.

There was a growth of 114% in Tourism, Hotel, and Restaurant sectors. The transportation sector including airlines grew by 74.94%. Tourism sector comprises 10% of the economy and 23.5% of labour force. Agriculture and Fishing sector grew only by 4.64%. Agriculture which was 17.8% of total economy is now reduced to only 8%. This is a sign that people are moving away from agriculture.

Agriculture production was at Rs.44,299 crores while industrial production stood at Rs.60,477 crores. Kerala’s debt is sustainable. The investment done by using debt money had resulted in the economic rise after Covid. The investment done through KIIFB and other construction of other infrastructure saved the economy. KIIFB is a financial depression package. Even though its working was hindered due to Covid, it was beneficial to the state.

In 2021-22 at least Rs.10,000 crore was spent from KIIFB. The money given by KIIFB to acquire land for national highway was Rs.25,000 crores. This money reached the hands of the people. This investment had helped the economy. The interest of the loan taken by the government is less than the economic growth. All this shows that the criticism that Kerala is in a debt trap as false.

Thomas Isaac said that when the economy grew by 12% the interest rate was only 7%.