Alleging that the demonetization pushed the economy into a deep crisis, the state government has decided to defer budget and wait for the Union Budget.  

 

"We have decided to postpone the presentation of budget considering the present state of the economy," Finance Minister Thomas Isaac told Asianet News. "The budget could only be presented after weighing the impact of demonetization on the state economy," he added. The minister said that he would have to wait for the Union Budget. Earlier, the state government had plans to present the budget in January next year.

 

 Usually, the state budget is presented in January or February. In the current circumstances, it would be presented by the end of February or in March.


Meanwhile, a report by State Finance Secretary K M Abraham has warned that the state is headed for a grave currency crisis. It also recommended that the state undertakes a comprehensive analysis of the impact of currency ban before planning financial management for the upcoming financial year.


State Finance Minister Thomas Isaac, a staunch critic of demonetization, had stated earlier that the "disastrous intervention of Modi government" in the economy caused a loss of Rs.3lakh crore. The state also suffered huge revenue loss affecting the welfare schemes and disbursement of salaries and pension.