Kerala Chief Minister Oommen Chandy is going to face a host of political and administrative problems during the post-Onam period.
One of the biggest problems that his government is facing is the financial crunch, which is all set to develop into a full-blown crisis as a result of a steep fall in revenues owing to the changes in the liquor policy.
Mr. Chandy and Finance Minister K.M. Mani have said the government will tide over the crunch created by a heavy outflow of payments during the Onam season.
The major impact of the fund crunch will be felt on the 676 Mission of the government, formulated by Mr. Chandy to give a new direction to his rule in the remaining two years of his term. It is almost certain that the State will witness a sizeable cut in the Annual Plan.
The Finance Minister has already gone in for compressing spending to avoid mounting a huge revenue deficit.
With inflation yet to be bridled, additional subsidy amounts will have to be provided to keep the prices of essential commodities down. Tourism industry, a major player in employment generation, will be severely hit. The construction industry — a major source of employment and income generation — will also be seriously affected.
