Kerala Budget has many projects, but their timely implementation is equally crucial
1 month, 2 weeks ago

Kerala Budget has many projects, but their timely implementation is equally crucial

The Hindu  

Kerala has been experiencing a persistent, acute, and unprecedented fiscal crisis. The crisis during the last decade can be divided into three phases — the 2016 White Paper on State finances which predicted a fiscal collapse by 2021, the unprecedented fiscal crisis declaration by Kerala’s Finance Minister in December 2022, and the unprecedented borrowing of the State in 2023-24 indicating that the State is in a debt trap. In the Budget speech, the Finance Minister has taken a position that Kerala has overcome the trying times of severe fiscal constraints that have affected the State in recent times. Causes of crisis Kerala’s persistent fiscal crisis is a structural problem arising due to an excessive increase in non-Plan revenue expenditure, the decline in the share of capital expenditure, poor resource mobilisation, and the heavy reliance on borrowing to meet revenue expenditure from budget and out-of-budget sources. It includes the development of Vizhinjam port phases 2 to 4, health tourism hub, metro projects in Kochi, Kozhikode and Thiruvananthapuram, SilverLine semi-high-speed rail project, constructing 150 bridges across the State, port development in Azhikkal, Beypore, Kollam, Alappuzha and Ponnani, etc.

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