THIRUVANANTHAPURAM
The Government is anticipating 30 per cent cut in the plan outlay this fiscal due to the economic slow down and mounting revenue deficit and has asked all the departments to prioritise the projects.
Finance Minister, T. M. Thomas Issac, replying to the discussion on the Supplementary Demands for Grants in the Budget for the Financial year 2019-2020, in the Assembly on Tuesday said a 20 per cent cut in the plan outlay was also imposed last year due to poor financial situation.
The welfare activities, hospitals, housing, pension had not been affected and all the pending bills of the local bodies had been cleared, Dr. Issac said responding to the queries from the Opposition UDF legislators. Development has not been impacted by the mounting revenue deficit.
To the criticism that the 250 million US $ provided by the World Bank as the first tranche for the Rebuild Kerala Initiative has been diverted for overcoming the financial crises in the State, the Finance Minister said the money is credited in a different Head. Money is ‘bunchable’ and rules does not prevent from using funds reaching the exchequer for needs of the State.
The reduction in plan outlay further will force the departments to skip ambitious projects chalked out using plan funds. An assembly subject committee has asked all departments to earmark and utilize 10% of their plan funds exclusively for disaster management activities.
The subject committee on revenue chaired by the Revenue Minister E Chandrasekharan has made the recommendation on the basis of Section 38 (2) (d) of the Disaster Management Act, 2005. The committee had also recommended that 10% of the funds from central schemes should be earmarked for disaster mitigation measures.
EOM/ARK
