Date:19/11/2008 URL: http://www.thehindu.com/2008/11/19/stories/2008111950330100.htm

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Budget likely in early February

Special Correspondent

To aim at sustaining standard of living in view of economic slowdown

T.M. Thomas Isaac held pre-budget talks with traders and businessmen on Tuesday.

THIRUVANANTHAPURAM: Finance Minister T.M. Thomas Isaac said here on Tuesday that the State budget for 2009-10 would be presented early in February.

In view of the present economic situation, the budget would aim to sustain standard of living and development.

The Minister was talking to presspersons after pre-budget talks with traders and businessmen here.

Dr. Isaac said the economic recession would badly hit the traditional sectors such as coir, cashew and handloom. Agriculture prices would fall. Hence, welfare activities and social security measures needed to be stepped up.

“The government will try to improve social security and increase job opportunities. For this, it will target maximum investment in infrastructure,” he said.

The Minister said the State government had officially requested the Centre to urgently intervene and increase investment in infrastructure development. It should undertake construction of roads, bridges and other infrastructure.

In a letter to Union Finance Minister P. Chidambaram, he had sought an increase in the borrowing limit of the State. The current borrowing limit of Kerala was Rs.7,000 crore. If this was increased by Rs.1,000 crore, Kerala could undertake infrastructure development costing Rs.5,000 crore.

Dr. Isaac said the government had requested the empowered committee of State Finance Ministers to convene a meeting of the Ministers to discuss counter-measures against recession. The Centre could make more money available by printing currency. Consequent inflation could be neutralised by bringing down the prices of petroleum products.

He said the fall in petroleum prices showed that the Communist Party of India (Marxist) was correct in its assessments about the role of speculators in driving up prices. Futures trading were responsible for increase in commodity prices in India.

The Minister said that whether he would present a full State budget for the vote of the House in February or seek a vote on account would depend on the timing of the Lok Sabha elections.

Pre-budget talks would be held on regional basis in the coming days with traders and industrialists. Discussions were planned with people’s organisations also.