Finance Minister KN Balagopal said that people will be convinced of the background behind which the Thiruvananthapuram state government proposed resource mobilization methods in the budget. The minister told Deshabhimani that the media is making a mountain of the budget proposal to create a social security seed fund by ensuring a small amount of additional income from alcohol, petrol and diesel. With GST, the state’s taxing powers were reduced on petrol, diesel and liquor. Center levies huge cess and surcharge on these. The state does not get a single rupee while buying a central cess of Rs 20 per liter of petrol. This is the real reason for the price hike. The central action of levying surcharge and cess on products under the ambit of state sales tax should be withdrawn. The central approach of frequently cutting the state allocation has put Kerala in more trouble. Borrowing is also not allowed to cover the income-expenditure gap. Debts incurred by KIFB and the pension company become state liabilities, curtailing borrowing rights. 24,000 crore this year. It is in an unprecedented crisis that small tax hikes in some sectors and cess on petroleum products are decided. The financial crisis may continue in the coming year. LDF government aims to raise Kerala to infrastructure development and living facilities similar to any developed country within a quarter of a century. The finance minister said that the budget has been prepared for that. Read on deshabhimani.com
