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Kerala's public debt spirals to 
395 bn
Friday, 10 December 2004, 20:30 IST
THIRUVANANTHAPURAM :Cash strapped Kerala's public debt shot up to 
395 billion ($9 billion) in October this year as against 157 billion in 1998-99.
Likewise the revenue deficit rose from 20 billion to 36.8 billion during the same period.
"One of the main reasons for that is today 92 percent of revenue receipts go towards payment of salaries, pension and interest on loans," Finance Minister Vakkom Purushothaman told reporters here Friday.
"Or, in other words, 70 percent of the total expenditure of the state goes for this."
But the minister said even though public debt was increasing, the rate of increase since the United Democratic Front (UDF) government assumed power in 2001 was coming down.
"While during the Left Democratic Front (LDF) rule every year the rate of increase was on an average above 20 percent, we have brought it down and this fiscal we expect it would be kept at 11 percent," said Purushothaman.
Another reason for the hefty increase in the debt, according to him, is that the non-plan expenditure, especially in the education sector, has shot up by 10 billion this fiscal.
As an immediate measure, high interest bearing loans worth 45 billion have been swapped and this measure would go on.
The minister said the current annual plan outlay of 48 billion would be cut by 5.92 billion. Until October, 40 percent of it had been utilised.
"In one month's time, we would be getting the second tranche of Asian Development Bank assistance that would come to 6 billion and as a result there would not be any more downsizing of the annual plan."
Source: IANS
395 billion ($9 billion) in October this year as against 157 billion in 1998-99.
Likewise the revenue deficit rose from 20 billion to 36.8 billion during the same period.
"One of the main reasons for that is today 92 percent of revenue receipts go towards payment of salaries, pension and interest on loans," Finance Minister Vakkom Purushothaman told reporters here Friday.
"Or, in other words, 70 percent of the total expenditure of the state goes for this."
But the minister said even though public debt was increasing, the rate of increase since the United Democratic Front (UDF) government assumed power in 2001 was coming down.
"While during the Left Democratic Front (LDF) rule every year the rate of increase was on an average above 20 percent, we have brought it down and this fiscal we expect it would be kept at 11 percent," said Purushothaman.
Another reason for the hefty increase in the debt, according to him, is that the non-plan expenditure, especially in the education sector, has shot up by 10 billion this fiscal.
As an immediate measure, high interest bearing loans worth 45 billion have been swapped and this measure would go on.
The minister said the current annual plan outlay of 48 billion would be cut by 5.92 billion. Until October, 40 percent of it had been utilised.
"In one month's time, we would be getting the second tranche of Asian Development Bank assistance that would come to 6 billion and as a result there would not be any more downsizing of the annual plan."
Source: IANS