Kerala faces acute financial crisis: Governor

In his customary address at the opening session of the 14th Assembly, the Governor said there were no funds left even for the capital expenditure like construction of roads, bridges and other infrastructure projects.

 

"Kerala is today facing an acute financial crisis and a very vexing development stalemate.

 

"The government will focus on a multi-pronged strategy, firstly, of stepping up revenue mobilisation, secondly, of eliminating wasteful expenditure and thirdly, of leveraging provisions earmarked in the budget for the capital expenditure for mobilising funds from market," he said.

 

In the over two hour-long address, the governor said that for the last three years (2013-2016), implementation of the Annual Plan approved by Assembly has "virtually stagnated".

 

Kerala needs an infusion of Rs 50,000 crore to Rs 1,00,000 crore funds for infrastructure, both in the public and private sector, to propel itself to the forefront in terms of economic development and competitiveness, he said.

 

"This means that Kerala will have to mobilise 10-15 per cent of its current GDP during the next five years for infrastructure. The task is by no means easy," he said.

 

Making it clear that the LDF government would not distance itself from private investment, the governor said it would encourage rapid infusion of private investment into the state and would provide a congenial environment for this.

 

The government would ensure that it would be without "neglecting the rights of workers or without breaching the environment laws."

 

Criticising the previous government for putting the resource mobilisation at grave risk by undermining the revenue collection machinery, the governor said LDF government would pursue a proactive policy of "zero tolerance to corruption".

 

The government would further strengthen the Kerala State Right to Service Act-2012, he said.

 

It would extend the land under paddy cultivation to three lakh hectares and expand the area of vegetable farming to 50,000 hectares.

 

"A special package for addressing price fall in cash crops including rubber will be formulated with the support of the Central government," he said.