Finance Minister hints at cost-saving measures to overcome extreme financial crisis

Thursday, Jun 30, 2016,13:05 IST By metrovaartha A A A

Thiruvananthapuram: Finance Minster Do. Thomas Isaac has said that the financial crisis of the state is extremely serious.

He made it clear that there will be strict restriction of expenses without affecting the poor. There will be no moratorium on welfare schemes and pensions.

Presenting a White Paper on the fiscal condition of the state exchequer in the Assembly Thursday, the minister blamed the previous UDF Government for the total collapse of fiscal stability.

The financial crisis cost the state its fiscal credibility.

He said corruption and excess expenditure led to this. Schemes were announced without looking into the state’s coffers.

Do. Isaac said there is total collapse of the tax administration.

The state has short term liabilities of more than Rs. 10000 crores.

Payment of Rs 1600 crores dues to government contractors is pending.

The minister said the previous government claimed to have surplus by withholding the arrears. UDF kept mum on the arrears to be paid, he told reporters at a digital demonstration of the White Paper.

Huge increase in non-plan expenditure led to debt-trap, according to Thomas Isaac.

The State urgently needs Rs 5900 crores to meet day-to-day expenses.

Growth of tax collection reduced to 12 percent from 17.4 percent.

The paper pledges to increase tax collection by 20-25% annually.

He accused the Opposition of trying to play down the reality.

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