Financial Daily
from THE HINDU group of publications

Thursday, July 26, 2001



Letters | Prev

Kerala crisis

T. V. Jayaprakash, Palakkad

In 1990-91, the PSUs in Kerala had a loss of Rs 765.27 crore, which had increased to Rs 2,615.98 crore by the end of the decade. At that time the State's deficit was Rs 3,624.21 crore, having a revenue of Rs 7,941.21 crore and an expenditure of Rs 11,565 .96 crore. The revenue deficit in 1990-91 was Rs 422.04 crore and in 1995-96, it was Rs 402.82 crore. During the last five years, the deficit has increased steeply.

The economic crisis is due to mismanagement. The public debt in 1996 was Rs 10,000 crore, and has doubled now to Rs 20,000 crore. The Bills of account to be cleared exceed Rs 5,000 crore.

Due to vested interests at work, the people in power have failed to enforce the law on proposals for revision of rents on government leases passed by the State Assembly in 1980.

The unproductive projects should be abandoned to arrest the excessive dependence on debt. Punctuality, promptness, timeliness, sincerity and discipline should be ensured in the revenue earning boards, corporations and departments. Also, the public sector should not be damaged just to support mean intentions.

There should be an earnest attempt by the Government to solve the problems by overcoming the financial crisis that had been evolved from nepotism, corruption, populism and laxity of preponderance. Strong political will and a clear direction towards crisi s management are essential at this juncture.

Related links:
Rs 448-cr deficit in Kerala budget -- Proposals to mobilise Rs 456.40-cr addl funds

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