Kerala has been going through a serious financial crisis similar to the economic slowdown experienced in 2001, said B.A. Prakash, Chairman, Kerala Public Expenditure Review Committee, here on Saturday.
He was delivering the presidential address at the round table discussion on “State Public Finance” jointly organised by the Kerala Public Expenditure Review Committee and K.M. Mani Centre for Budget Studies, Cochin University of Science and Technology.
Mr. Prakash said that unless the government initiated urgent steps to reduce expenditure and enhance revenues, the State would be in dire straits. The budget was being considered as a political document more than a financial document, he said, according to a press release issued by Cusat.
The KSRTC was facing a serious financial crisis due to non-payment of government grants. As a result, around 36,000 former employees are yet to get their pension for the past four months. Universities in the State would also face the same situation shortly, he said. Mr. Prakash said the major share of funds borrowed from various agencies was being used for repayment of the principal and interest on previous loans and funds were not available for development of infrastructure.
