Why Kerala’s tax rate hikes appear compelling
1 year, 10 months ago

Why Kerala’s tax rate hikes appear compelling

The Hindu  

Kerala’s Budget 2023 presented by Finance Minister K. N. Balagopal on February 3, 2023 focussed on revenue mobilisation. In addition to tax rate hikes, Budget 2023 has also focussed on non-tax revenue mobilisation, including raising revenue from revising the royalty rates of minor minerals and increasing the user charges. The hikes in tax rates were to identify fiscal space amidst maintaining the fiscal rules-based deficit threshold ratio, and also due to high volatility in the intergovernmental fiscal transfers from the Union to the States. Kerala’s Finance Minister pointed out that the decline in revenue deficit grants and the discontinuation of goods and services tax compensation had further affected the fiscal space of the State. This fiscal measure has been resorted to to find fiscal space amidst shrinking tax transfers from the Central government and the fiscal rules-based threshold ratio for fiscal deficit-GDP at 3.5%.

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History of this topic

Kerala's revenue soars to Rs 77,000 cr
7 months ago

Kerala's revenue soars to Rs 77,000 cr

Deccan Chronicle  

“We've managed a record increase in the state's own revenue even as the Centre financially squeezes us. The state's own tax revenue rose from Rs 47,000 crore in 2020-21 to Rs 77,000 crore in 2023-24,” Balagopal said. “Without this increase, Kerala's economy would have collapsed due to the central government's anti-state policies.” The minister also noted that the state government …

CAG finds fault with Kerala’s off-Budget borrowings again
10 months, 1 week ago

CAG finds fault with Kerala’s off-Budget borrowings again

The Hindu  

Off-Budget borrowings have yet again drawn the criticism of the Comptroller and Auditor General of India whose latest audit report was tabled in the Kerala Legislative Assembly on February 15. Apart from borrowings made by the Kerala Infrastructure Investment Fund Board and the Kerala Social Security Pension Ltd, the borrowings under a bill discounting system also have drawn flak this …

The severe erosion of fiscal federalism
10 months, 2 weeks ago

The severe erosion of fiscal federalism

The Hindu  

On February 8, Kerala Chief Minister Pinarayi Vijayan will lead a protest in New Delhi against the Centre for “placing Kerala on a financial embargo”. Kerala has moved the Supreme Court contending that the Centre’s imposition of a Net Borrowing Ceiling on the State, which limits borrowings from all sources, violates Article 293 of the Constitution. Major infrastructure projects initiated …

Kerala’s public debt comes down to ₹2.38 lakh crore
10 months, 3 weeks ago

Kerala’s public debt comes down to ₹2.38 lakh crore

The Hindu  

Amid the financial strains that put the Kerala government in a fix making it difficult for it to meet its fiscal obligations efficiently, a document tabled by Finance Minister K.N. Balagopal in the Assembly on Tuesday revealed that the State’s public debt has come down to ₹2.38 lakh crore at the end of March 2022-2023. As per the accounts of …

Measures to make T.N. revenue-neutral to be keenly watched
1 year, 9 months ago

Measures to make T.N. revenue-neutral to be keenly watched

The Hindu  

Apart from the anticipation of an announcement on the monthly honorarium of ₹1,000 for women family heads, measures to achieve the goal of making the State revenue-neutral in three years would be keenly watched in the Tamil Nadu Budget for 2023-24 to be presented by Finance Minister Palanivel Thiaga Rajan on Monday. As per the provisional figures of the Comptroller …

Kerala Budget will push people to further suffering: BJP
1 year, 10 months ago

Kerala Budget will push people to further suffering: BJP

The Hindu  

BJP State general secretary C. Krishnakumar said here on Friday that the State Budget would push the people into further suffering. Kerala has become the State to charge the highest price for petrol and diesel in the country,” said Mr. Krishnakumar. The government, the BJP leader said, is pushing the people to further depths of suffering by increasing taxes. Mr. …

Explained | Kerala’s mounting public debt
2 years, 4 months ago

Explained | Kerala’s mounting public debt

The Hindu  

The story so far: Over the past few months, Kerala’s mounting debt liabilities have been brought into sharp focus with the Reserve Bank of India, the Comptroller and Auditor General, and the opposition Congress-led United Democratic Front flagging the issue. Kerala Infrastructure Investment Fund Board A body corporate constituted by the Government of Kerala to mobilise financial resources outside of …

Sri Lanka hikes tax rates to maximise government revenues
2 years, 6 months ago

Sri Lanka hikes tax rates to maximise government revenues

The Hindu  

Sri Lanka's cash-strapped government on Tuesday announced a taxation overhaul to boost revenue amid the country's crippling economic crisis, hiking value added taxes and corporate income tax, and slashing the relief given to individual taxpayers. "The implementation of a strong fiscal consolidation plan is imperative through revenue enhancement as well as expenditure rationalization measures in 2022," Mr. Wickremesinghe's office said …

Sri Lanka hikes tax rates to boost government revenues
2 years, 6 months ago

Sri Lanka hikes tax rates to boost government revenues

Al Jazeera  

The crisis-hit country’s inflation rose to 39.1 percent in May, its statistics office said on Tuesday. Sri Lanka’s cash-strapped government has announced a taxation overhaul to boost revenue amid the country’s crippling economic crisis, hiking value added taxes and corporate income tax, and slashing the relief given to individual taxpayers. Sri Lanka’s inflation rose to 39.1 percent in May, its …

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