The move for a financial consultant to source funds from the financial markets has been long in the making.
The State government, sources said, held several discussions with representatives of SBI Caps and other financial agencies before working out a model for implementation. It had taken over six months to formulate a scheme of selection after the decision was taken by December-end. Additional Chief Secretary K.M. Abraham is the main driver for this model. With a major portion of its revenue flowing towards payment of salaries, pension, and interest payment, there is hardly any funds left for development activities. Of late, revenue collections have also been patchy, with the closure of liquor bars contributing a lot towards the fall in income. The State government will also have to incur Rs.5,575 crore for meeting its commitment on pay revision for government employees. The consultancy route, it is contended, will enable the State to tap new avenues of funds.
