The current economic situation in Kerala is the worst that the state ever had. Now the state had sought the help of the union government to help them to bail out from the crisis. The Supreme court of India had instructed the Union government to allocate more funds to Kerala to help them to tackle the crisis.
But no shocks....Guess what happened next? The State government started blaming the central government as a reason for their economic crisis. The vice versa too happened that the Central government authorities cited the Kerala government's misgovernance as a key player for this tough situation. We don't know exactly who is the Hero of this unpleasant situation but we all know who is going to suffer from this phase.... THE NORMAL WORKING CLASS OF KERALA. It's all because of wrong politicians and their wrong policies. Ok, let's look at why we say that Kerala is in a crisis and on what indicators we are confirming it......
- Kerala had already crossed its threshold limits of borrowing before the specified allowable period
- The committed expenditure ( means the compulsory expenditure of the state such as salary, pensions and interest payments etc) is nearly 70% of its total expenses where the national average revolves around just 55%.
- The state is paying around 20% of its expenses only on interest payments.
- The capital expenditure (means the amount spent on infrastructure) shrunk to just 8% which is around 12-16% in other states.
These are the indicators which shows the current crisis in Kerala. The income of the state government also shrunk because of the poor tax collection. Kerala government collected only 8% of their total income from the tax collection. They could not execute the new IGST regime in the state properly.
But of course there must be some justification from the state government right? Yes there are....
- They are saying that the Central Government has reduced their dues to Kerala due to the new rules followed in the tax money distribution between the center and the state.
This is because the latest finance commission has not given weightage to the 1971 population of the states which impacted the share of Kerala and turned in favor of the northern states where the population increased drastically after 1971. The justification from the Kerala government side is that it looks like they were penalized for controlling their population.
2.The off budget borrowings ( Indirect borrowing of money in the name of Public sector units which does not comes under the direct debt of the government) are also now censored by the union government that these borrowings also comes under the direct debt of the state government so the state could not be able to take loans using off budget borrowings.
These are some of the reasons put forward by the state officials to escape from taking the responsibility of the crisis. Clearly, the state government seems more guiltier than the union for the ongoing economic crisis in Kerala.
Personally, I have a comment on the first point of justification by the state officials. India is not China to impose a law ordering a maximum of one child for a female . Child birth is everyone's personal liberty. Government can conduct awareness programs but it could not order its citizens to have a specified number of children. For your own personal gain, you cannot claim to give weightage for an age old outdated data (1971 population data). Then what is the purpose of taking population census for every 10 years? We should make policies and schemes only for the present public not for the people who lived in our grandpa's period.....Equal proportions of taxes are going for the so called under developed states like UP and Bihar (Note it...Its Equal proportions and not equal amount) . But they are not complaining for an economic crisis. Then Why is the most literate state in India is facing a crisis?.....Any answers for this from the Kerala Government?....
On a serious note....I would like to ask a question to the people of India not only to Kerala....Whether your religion, caste, race, language have any role to play in these type of crisis to bail out you and your family? Then why are they playing a vital role in front of EVM. Choose your leaders wisely......THANK YOU
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