Finance Minister K.M. Mani said here on Wednesday that sound financial management by the UDF government had improved the capacity of the State’s economy to bear the increasing debt burden.
Replying to the debate on a motion for reference of the Kerala Finance Bill 2014 and the Kerala Finance (No.2) Bill, 2014 to the Subject Committee of the Assembly, he said the Debt to GSDP (Gross State Domestic Product) ratio had gone down amid a rising debt burden. “In 2007- 08, when the State government had a public debt of Rs.57,410 crore, the Debt to GSDP ratio was 31.64 per cent. The ratio, however, went down to 29.53 per cent in 2013-14, against a debt of Rs.1,19,000 crore. This is indicative of good financial management,” he claimed.
Mr. Mani said the achievement was more remarkable in view of the fact that the UDF government had completed public works worth Rs.500 crore sanctioned by the previous regime and a Rs.5,000-crore stimulus package. He assured the House that the arrears due to contractors would be cleared in phases. The Minister said the government would consider a proposal to reduce the asset development fund of MLAs from Rs.25 lakh to Rs.10 lakh.
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During the discussion on the motion, Government Chief Whip P.C. George stressed the need for political parties in Kerala to join hands to launch a stir against the Centre against the neglect shown to the State. “Unlike the UPA regime, which at least held out a few promises, the NDA government has indicated that Kerala has nothing to expect from the Centre.” P.C. Vishnunath said Kerala would be one of the greatest beneficiaries of the GST (goods and services tax) regime to be introduced by the NDA government.