Thiruvananthapuram: Amid the financial crisis, the fiscal deficit of Kerala has touched Rs 32,417 crore this financial year. Earlier, the government had announced in the previous budget that it would avail loans worth Rs 39,706 crore during the financial year 2023-24. But the amount has already reached Rs 32,417 crore.
Usually, the state government seeks credit when it is unable to meet the expenses from its revenue. According to the latest figures with the Comptroller and Auditor General (CAG), the state could secure loans amounting to Rs 32,417 crore till January 31 even after the Central government reduced its borrowing limit.
However, the state would be forced to apply for more loans as it has to clear treasury bills worth at least Rs 20,000 crore in March alone. Against this background, Kerala has sought Rs 13,609 crore which it rightfully deserves on an urgent basis from the central government. However, the Centre has set the condition that the state should withdraw a case filed in the Supreme Court to release this amount.
Consequently, Kerala is pinning hopes on an interim order by the Supreme Court to ease the situation.
Kerala urgently demanded Rs 13,609 crore from the Centre on the following grounds: modernisation in the power sector (Rs 4866 crore), regularization of investments in public accounts (Rs 4323 crore), remainder of the loans announced last year (Rs 1877 crore) and replacement loan (Rs 2543 crore).
The state government had set a target of Rs 1.35 lakh crore for tax collections in the current financial year. However, the actual revenue was a mere Rs 75,000 crore until January. While the state could collect 76 per cent of the anticipated income during the same period last year, the share was only 73 per cent this year.
The state’s tax revenue includes Goods and Services Tax (GST), land registration, property tax, sales tax, excise duty and contribution of its share of the tax by the Centre. Among these sources, there was an increase only in GST this year, compared to last year.
At the same time, the state has spent Rs 1.24 crore till January, while the anticipated expenses for the entire financial year were Rs 1.74 crore. Even though expenses on interest and salaries went up this year, less money was spent on pensions and subsidies.
