A four per cent fall in growth of tax revenue appears to have set the alarm bells ringing, with the Cabinet on Tuesday pondering over measures to tide over financial difficulties without a Plan cut, deferring welfare measures, and by improving tax yield.
Addressing a press conference after a Cabinet meeting here, Chief Minister Oommen Chandy said the situation was not alarming but the fall in tax and non-tax revenues as against the budgeted amount was a matter of concern.
The Additional Chief Secretary (Finance) and Principal Secretary (Expenditure) gave a presentation to the Cabinet on the financial situation.
Mr. Chandy did not see anything alarming in the fall in tax revenues which had happened due to several reasons.
The Chief Secretary had been asked to hold discussions with various revenue-earning departments and finalise a scheme ahead of the next Cabinet meeting on October 10. The government did not propose to bring in curbs on recruitment but there would certainly be a restriction on creation of new posts. The State had recruited 15,000 people last year and the additional financial burden on this count was Rs.450 crore, he said.