White paper tabled in Assembly, says state faces severe financial crisis
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Thiruvananthapuram: State Finance Minister Dr. T.M Thomas Isaac tabled the white paper on the condition of the state finance in the Kerala Assembly on Thursday.
Talking to reporters, Isaac said the crisis had worsened as the previous UDF government gave unnecessary tax exemptions, overspent on projects and failed in tax collection.
“The tax revenue declined from 17.4 percent during the time of the previous LDF government to 12 percent during the time of the UDF government. The expenditure outside the planned projects has put the state in debt trap,” says the white paper.
The state is need of Rs 5,900 crore for day-to-day expenditure and money to the tune of Rs 6,300 crore needs to be repaid immediately, according to the document.
“The revenue deficit stands at Rs 8,199 crore and the fiscal deficit at Rs 15,888 crore,” it says.