Financial Daily from THE HINDU group of publications
Saturday, Mar 16, 2002

News
Features
Stocks
Port Info
Archives

Group Sites

Industry & Economy - Economy


Kerala Govt liabilities on the rise

Our Bureau

THIRUVANANTHAPURAM: The liabilities of the State Government increased in 2000-01, resulting in the widening of the gap vis-a-vis assets, according to the report of the Comptroller and Auditor General of India (CAG) for the year.

The report said that the State's assets grew by seven per cent during the year, while the liabilities went up by 18 per cent.

In the circumstances, the report has called upon the Government to control expenditure and enforce tax compliance.

The fiscal deficit declined to Rs 3,878 crore in 2000-01 from Rs 4,534 crore in the previous year. The ratio of revenue deficit to fiscal deficit increased from 0.42 in 1996-97 to 0.81 during the year under review.

The Government's outstanding public debt rose from 81 per cent from Rs 7,583.39 crore in 1997 to Rs 13,729 crore in 2001. The internal debt moved up by 157 per cent from Rs 2,970.85 crore to Rs 7,627.34 crore during the period.

There was a sharp increase in interest payment from 16 per cent of the revenue expenditure to 19 per cent during 1996-2001.

This indicated that the Government finances were under severe pressure, the report said.

As much as 81 per cent of the Government's borrowings in 2000-01 went towards revenue expenditure.

The Government had to stop treasury payments even as it ensured that payments to the employees were unaffected. As a result, there were no funds left for developmental programmes.

The report has stressed the need to improve the Government's budgeting, ensuring tax compliance and controlling of revenue expenditure without which there would be little improvement in the financial situation.

Send this article to Friends by E-Mail

Stories in this Section
I-T rapped for slips in cement co assessments


$100-m IBRD aid for projects to push economic reforms
Each panchayat in TN to have a big industry: CM
Post-reforms, job growth sharply down, says study
Kerala Govt liabilities on the rise
NGOs take up wasteland regeneration
Bengal tanners ready pollution control plan
Brazilian province says Ciao! to Kerala
Govt reviews crude oil price rise
OIDB funding for geochemical project
KPCL begins work on Almatti project
REC, IDBI to fund small power projects
Govt move on SSI subsidy dues
Tyre output
Water crisis grips Karnataka districts
CII for community-based water conservation effort
Bangalore pubs go to sleep early
Primary education in AP to be made compulsory, free
RASET teams up with US varsity
Will Budget cement construction?
Heritage buildings vanish as Bangalore goes hi-tech
`Realty can contribute 2% of GDP growth'
W. Australia eyeing mining prospects
IDBI plans consortium for film financing
`Banks not keen on lending for films'
Fears over Domestic Violence Bill allayed
Options to sweeten AI, IA sell-off
Sell-off, dampener for Tide Water Oil?
Transfer of tribal land -- AG's opinion sought on Sponge Iron divestment
Corporates split over FDI in retail trade
`HR is the key to success'
Hyderabad Engagements
Kochi/Thiruvananthapuram Engagements
Chennai Engagements
Entertainment sector growth pegged lower
Tax base wider; but little change in mop-up: CAG
Revised import norms for inputs irk soap sector
Birds of passage


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line