Kerala's Finance Minister, KN Balagopal, has offered insights into the state's economic trajectory, emphasizing that Kerala is currently entering a robust growth phase. This period is marked by significant prospects for advancement in infrastructure, industry, and the service sector, which, in turn, are expected to generate an increased number of employment opportunities.
Despite concerns regarding the financial condition of the state, Minister Balagopal underlined a substantial leap in revenue generation, which reached an impressive figure of Rs 71,000 crore during the last fiscal year. However, he also pointed out that Kerala has been grappling with a liquidity crunch due to what he described as the central government's "step-motherly" treatment.
In an interview with PTI, Balagopal cited reports from various agencies, including recent assessments by Fitch Ratings, to underscore Kerala's current economic prosperity. These evaluations highlight that the state is experiencing a highly favorable phase of economic growth.
Over the past few months, Kerala, governed by the Left, has been vocal about its grievances against the fiscal policies of the BJP-led Central government. These grievances encompass allegations of delayed disbursement of GST funds and restrictions imposed on the state's ability to raise capital.
Discussing the measures implemented by the finance department to enhance revenue generation, Minister Balagopal emphasized the impressive progress in state-owned tax revenue (SOTR) achieved under the leadership of the second Pinarayi Vijayan government, which assumed office in 2021. He attributed this progress to efficient tax administration and contended that it serves as a clear indicator of Kerala's economic advancement.
Balagopal, a prominent leader within the state's CPI (M) party, did not shy away from criticizing the Central BJP-led government. He asserted that the Central government was withholding Kerala's rightful share of resources, thereby exacerbating the state's liquidity challenges.
In a noteworthy development, Fitch Ratings recently revised the outlook for the Kerala Infrastructure Investment Fund Board (KIIFB) from negative to stable. This change in outlook reflects the positive evaluations conducted by various agencies, including Fitch Ratings, which have assessed the state's financial position, revenue generation, capital investment, and debt management. Notably, these assessments have indicated marked improvements in all these areas since the onset of the COVID-19 pandemic.
