THIRUVANANTHAPURAM: Realizing that the state will not get a loan from the Centre during Onam, the state government has decided to raise money from the state itself. The revenue of the government will increase only if the Onam trade flourishes. For that, the government is planning to activate the market by providing benefits to the people.

The state needs an additional ten thousand crores. Efforts are being made to raise at least 8000 crores from Kerala. The government will rely on government-controlled institutions and cooperative institutions for this. The measures will be intensified as soon as Finance Minister KN Balagopal returns from Delhi.

The previous Pinarayi government had spent Rs 15,000 crore to Rs 20,000 crore during the Onam celebrations. This amount was spent on market intervention in addition to welfare pensions, bonuses, and festival advances.

With the central government restricting the state's borrowing limit and putting non-budgetary loans under the general credit limit, the state's financial situation became depressed. It is finding it difficult to get money after the Centre slashed grants and tax allocations and stopped GST compensation.

With the introduction of GST, the state has no way to increase its revenue by increasing taxes and other things. The state has permission to borrow 15,390 crores till December this year. It has already borrowed Rs 14500 crores. Now, the remaining loan availability till December is only 890 crores.

Kerala has demanded temporary permission to borrow an additional one percent of GDP or an urgent short-term economic package. MPs from the state directly contacted Finance Minister Nirmala Sitharaman's office on Saturday but to no avail.

Onam market of Rs 40,000 crores
1. 35% of the financial transactions in the market of the state take place during Onam. Gold, clothes, shoes, liquor, lottery, fridge, TV, mobile phone, and other electronic devices are the most sold during Onam. This is also the time when sectors like tourism and transport become active. Financial transactions totaling between 30,000 and 40,000 crores are carried out during the Onam season.

2. The government activates the market by providing salaries, advances, bonuses, festival allowances, social pensions, etc. to the people. If the Onam kit is given, people will not spend money to buy rice, vegetables, groceries, etc, for which the government will not get tax. Instead, they will use the money to buy tax-charged luxuries and other items. The government gets 12 to 18% tax.

3. 500 crores will not be required to provide Onam kit. However, the amount that will be received as tax will be more than 1400 crore rupees. Economists are of the opinion that social security pension distribution should be streamlined for this. 60 lakh people are getting social pensions in the state. 15 lakh people get additional income with central and state government pensions and salaries. There are 90 lakh families in the state.