The Hindu : State's finances 'back on the rails'

Online edition of India's National Newspaper
Sunday, Aug 25, 2002

Southern States

Southern States - Kerala

State's finances 'back on the rails'

By Our Special Correspondent

THIRUVANANTHAPURAM Aug. 24. The State's finances are back on the rails, surmounting all the difficulties the UDF Government had been saddled with the time of assuming office, according to the Finance Minister, K. Sankaranarayanan.

In a statement here today, the Minister said the Government was in a position to extend all the benefits due to its employees during the Onam festival this time without resorting to loans from cooperative institutions or advances from the Central Government.

This was a happy change from the usual Onam situation these past many years.

The Onam season invariably used to find the State Government neck-deep in overdraft.

This time there was no overdraft. Sales tax collections had improved substantially and the austerity measures initiated by the Government had started showing results, making the improvement in the situation possible.

``It should be noted that the Government is even now busy paying back the liabilities it was handed over by the previous Government. This makes the achievement all the more gratifying,'' he said.

When the Antony Government assumed office, the public debt was in the range of Rs. 24,000 crores. Liabilities which had to be settled immediately came to Rs. 3,500 crores and the revenue deficit had shot up to a staggering figure of Rs. 3,147 crores.

With the repayment of loans having fallen under default, many financial institutions had stopped their assistance to the State Government then. Four instalments of dearness allowance were due to the employees and teachers and pension payments were in arrears by eight months, Mr. Sankaranarayanan recalled.

He said that, on coming to power, the UDF Government had taken a pragmatic view of the whole situation, trying to surmount the seemingly insurmountable difficulties with a resolve and financial discipline.

Many past liabilities had been cleared by this Government. A sum of Rs. 500 crores outstanding to the local self-government institutions was cleared. The Government had also issued letters of credit worth Rs. 754.39 crores to the contractors and the entire amount was paid to them. Letters of credit for Rs. 165 crores more would be issued on Monday and this amount too would be released to the contractors in August itself, the Minister said.

Giving the list of other financial obligations the Antony Government had settled, he said the services of the Plus Two teachers appointed during the time of the LDF Government were regularised by this Government and their salaries paid with effect from December 2001.

The employees and teachers were sanctioned two instalments of dearness allowance due to them. This amount would be disbursed to them from September onwards.

There used to be an unreasonably long delay in releasing the pension benefits to the employees and teachers.

Now the Government was in a position to place these benefits in the hands of the pensioners within one month of issuing the sanction orders.

The Minister said the Government's ability to contain its revenue deficit was a reflection of the financial discipline it observed.

From the level of Rs. 3,147 crores in 2000-01, the revenue deficit was brought down to Rs. 1,886 crores in 2001-02 by this Government.

Also, the wrong practice of transferring huge sums to the treasury public accounts under the pretext of facilitating development had been in vogue in the State. In 2000-01, a total sum of Rs. 1,906.65 crores was transferred to the treasury public accounts.

This was brought down to Rs. 824.48 crores in 2001-02, Mr. Sankaranarayanan said.

Printer friendly page
Send this article to Friends by E-Mail

Southern States

Stories in this Section

State's finances 'back on the rails'

E-governance sans e-heart

Spielberg threatens legal action against Kerala firm

Sex racket: identification parade held

Pallavur Kunjikuttan Marar dead

Endosulfan: VS not satisfied with panel

`Tribal court' finds Forest dept. guilty