Kerala Cabinet decided to cut non-plan expenditure and hike various fees to shore up non-tax revenue on Thursday in view of financial stringency faced by the government.

Chief Minister Oommen Chandy told the media after the Cabinet meeting that non-Plan expenditure would be cut in a manner that would not cause difficulties to the people.

Plan expenditure would not be cut, but measures would be taken to improve delivery through effective and efficient implementation during the remaining period of the financial year.

Mr. Chandy said that only those charges that would not affect the people directly have been revised to increase non-tax revenue. The details would be announced later in the day by Finance Minister K.M. Mani.

Asked whether the government was on overdraft, the Chief Minister said that the media was asking a former Finance Minister who had closed the treasury thrice. “The situation is far better now. There is no financial crisis”, he added.

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