Going through a 'growth phase', Kerala is poised for very good development in infrastructure, industrial as well as services sectors that will create more job opportunities, according to the state's Finance Minister K N Balagopal.
Amid concerns over the state's financial health, he asserted revenue generation has made a 'giant leap' to Rs 71,000 crore in the last fiscal but the central government's 'step motherly' treatment has resulted in a liquidity crunch.
In an interview with PTI, Balagopal cited reports by various agencies, including the recent Fitch Ratings, to affirm that the 'state is now going through a very good economic growth phase.'
In recent months, the Left-ruled Kerala has been raising its voice against BJP-led Centre's moves on the fiscal front, including alleged delay in releasing GST funds and curbs on the state in terms of raising money.
Referring to the steps taken by the finance department for better revenue generation, the minister said through efficient tax administration, the second Pinarayi Vijayan government, which came to power in 2021, has made a giant leap in state-owned tax revenue (SOTR) and claimed it was an indication of Kerala's economic growth.
Balagopal, a senior state CPI (M) leader, criticised the Central BJP-led government, alleging it was denying Kerala its legitimate shares from various resources, causing a serious liquidity crunch.
The Fitch Ratings recently revised the outlook on the Kerala Infrastructure Investment Fund Board (KIIFB) to stable from negative.
Various agencies including Fitch Ratings 'assessed the financial position of the state, and they calculated how revenue generation is happening, how investment capital generation is happening, and how debts are coming down. There is a very notable improvement in all these areas post-covid-19', the minister stated.
Published 29 September 2023, 10:31 IST