Kerala is currently experiencing a significant growth phase and is poised for substantial development in its infrastructure, industrial, and service sectors, which will lead to the creation of more job opportunities, according to the state’s Finance Minister, KN Balagopal.
Despite concerns about the state’s financial stability, Balagopal emphasized that revenue generation has taken a significant leap, reaching Rs 71,000 crore in the last fiscal year. However, he pointed out that the central government’s treatment could be likened to a ‘stepmotherly’ approach, leading to a liquidity crunch.
In an interview with PTI, Balagopal referenced reports from various agencies, including the recent assessment by Fitch Ratings, which reaffirmed that Kerala is currently undergoing a robust economic growth phase.
In recent months, Kerala’s government, led by the Left, has been vocal about its opposition to the fiscal policies of the BJP-led central government. This includes alleged delays in releasing GST funds and restrictions on the state’s ability to raise money. Balagopal highlighted the measures taken by the finance department to enhance revenue generation, noting that through efficient tax administration, the second term of Pinarayi Vijayan’s government, which came into power in 2021, has seen a significant increase in state-owned tax revenue (SOTR), indicating Kerala’s economic growth.
Balagopal, a prominent leader of the state’s CPI (M) party, criticized the Central BJP-led government, accusing it of withholding Kerala’s rightful share of various resources, leading to a severe liquidity shortage.
Fitch Ratings recently revised the outlook for the Kerala Infrastructure Investment Fund Board (KIIFB) from negative to stable. Various agencies, including Fitch Ratings, have assessed the state’s financial position, examining aspects such as revenue generation, capital investment, and debt management. The minister noted a notable improvement in all of these areas following the challenges posed by the COVID-19 pandemic.