Date:29/07/2004 URL: http://www.thehindubusinessline.com/2004/07/29/stories/2004072901311900.htm

Back Kerala sets growth rate at 6.5 pc

Our Bureau

The credit-deposit ratio improved from 48 per cent to 51 per cent. This is proposed to be revised upwards to 60 per cent in the current financial year.

Thiruvananthapuram , July 28

THE Finance Minister, Mr K. Sankaranarayanan, has said that the State Government set a target of 6.5 per cent growth rate for the current financial year.

Replying to questions in the State Assembly on Wednesday, the Minister said the Government proposed to seek the RBI's permission to source development funds from non-residents, rather than from multilateral lending agencies, such as the Asian Development Bank (ADB), at a comparatively higher interest.

NRI deposits with various banks in the State amounted to Rs 29,769 crore. This is a potential source for easily accessible funds that can be used to finance development projects in the State, especially since plan funds alone cannot be expected to meet the demand.

The credit-deposit ratio improved from 48 per cent to 51 per cent. This is proposed to be revised upwards to 60 per cent in the course of the current financial year.

The 12th Finance Commission was given a detailed report of the State's developmental priorities, and is expected to give a favourable treatment to the same.

In written replies, the Finance Minister said deposits in the banks in the State, as on March 31, totalled Rs 65,961 crore. While the interest paid to depositors hovered between 3.5 per cent and six per cent, borrowers were charged between four per cent and 14.5 per cent. As per the Union Budget, revenue accrual to the tune of Rs 374 crore was expected by way of raised share of allocations to the State.

The Government proposed to consider revising upwards levy on leased land as part of a drive to tone up tax revenues and also mobilise more funds through the National Savings Scheme. Beefing up agricultural output is crucial to the prospect of bettering the State Domestic Product. A package for farmers was being prepared for this purpose. Steps were also being taken to recover tax arrears. During the last two years, dues totalling Rs 2,000 core have been collected.

Public sector institutions, corporations and boards owed Rs 818.29 crore to the exchequer as on March 31 this year.

The House passed the Kerala Appropriation Bill seeking to authorise payment and appropriation of the amount sought through supplementary demands for grants.

This came after the Finance Minister furnished his reply to the debate on the appropriation bills pertaining to the supplementary demands for grants for the current year and for excess grants for the previous years.