Total deficit to touch Rs. 201 cr.

By Our Special Correspondent

THIRUVANANTHAPURAM, MARCH 22. The Finance Minister, Mr. T. Sivadasa Menon, announced additional allocations in the Budget for 2000-2001 on Wednesday, taking the total deficit to Rs. 201.02 crores.

Replying to the three-day general debate on the Budget in the Assembly, the Finance Minister said that the pensions to the coir and handloom workers and fishermen would be increased by Rs. 20 a month. The stipend to the inmates or orphanages and homes for destitutes would be increased by Rs. 25. The compensation payable in the event of accidental death of tree climbers would be increased from Rs. 10,000 to Rs. 20,000.

Mr. Menon said that he was earmarking Rs. 2 crores to wave the penal interest on agricultural loans. Another Rs. 2 crores would be provided for the Goshree Development Project in Kochi.

He said that the allocation for paying rebate for handloom cloth would be increased to Rs. 13.5 crores. A sum of Rs. 50 lakhs would be provided as token provision to take up the Vamanapuram Irrigation Project. The same amount would be given for construction of a bund at the Ponnani Fishing Harbour. The harbour would be inaugurated shortly.

He said that the allocation for the Sahodaran Ayappan Road would be increased to Rs. 10 crores. As the road was almost complete, the amount would actually be allocated to the Greater Cochin Development Authority for the work on the Kaloor Kadvanthara Road. The Minister announced fresh allocations for various other works. The total amount needed for the new proposals would be Rs. 7.32 crores.

Mr. Menon said that the rationing system in the State would be continued at any cost. The Government would not mind an increase in deficit on account of this. Sufficient funds would be provided for the Government's market intervention efforts. Of the allocation of Rs. 10 crores announced to the Agricultural Workers Welfare Fund in the last Budget, the outstanding payment of Rs. 5 cores would be made this year.

He said that his Budget's pro-poor proposals reflected the approach of the LDF. As to demands of reduction on taxes on various items such as rubber wood and khadi products, the Government would take a decision after considering all the aspects of the demands. As they involved concessions, the Government could notify them at a later stage. It was too late for their inclusion in the Finance Bill.

The Minister said that availing of loans to meet governmental expenditure could not be avoided. During the five years of the UDF rule, the total debt of the State had gone up from Rs. 4,965 crores to Rs. 10,670 crores, marking an increase of 115 per cent. Now, THE debt had increased to Rs. 17,360 crores. The annual increase in debts was never been more than 115 per cent during the LDF rule.

Winding up the debate, the Chief Minister, Mr. E. K. Nayanar, said that the fiscal condition of many of the others States was worse than that of Kerala. The country was facing a crisis and several States such as Bihar had not even paid staff salaries.

The Chief Minister said that the DA announced to the employees in the Budget (from June) would be paid from January 1999. The arrears up to June 2000 would be merged with the Provident Fund.

He said the Government proposed to go ahead with the plan for issuing of consumer cards to consumers of electricity and the People's Policing Scheme. Both the schemes were beneficial to the people, he said.

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