The Hindu reports: Balagopal, Kerala’s outgoing Finance Minister, has refuted senior Congress leader V.D. Satheesan’s stand that the United Democratic Front (UDF) is inheriting an empty treasury from the CPI(M)-led Left Democratic Front (LDF).Speaking to The Hindu, Mr. Balagopal said Kerala is in a comfortable position financially.
Fiscal indicators including the State’s revenue, fiscal deficit and debt testify to this, he said.Following the UDF’s landslide 102-seat victory in the April 9 State Assembly elections, the spotlight was turned on State finances when Mr. Satheesan, Kerala’s Leader of Opposition during the 2021-2026 period, remarked at a post-victory press conference that the UDF has inherited a treasury so empty that a cat and her newborns had made it their home.“If you take basic financial criteria, Kerala is ahead now. Not only is there no cat, the State is in a very good position.
Background
In fact, there is a cash balance of approximately ₹6,000 crore. I offer my best wishes to the new government and the new Finance Minister. We have placed State finances in a comfortable position from where the new government can make it even better,” he said.‘Based on data’Mr.
Key facts
- Balagopal, Kerala’s outgoing Finance Minister, has refuted senior Congress leader V.D.
- Satheesan’s stand that the United Democratic Front (UDF) is inheriting an empty treasury from the CPI(M)-led Left Democratic Front (LDF).Speaking to The Hindu, Mr.
- Balagopal said Kerala is in a comfortable position financially.
- Not only is there no cat, the State is in a very good position.
What this means
Balagopal said his claims were not “political” but based on hard data in Reserve Bank of India (RBI) reports, various Central government studies and reports of the Comptroller and Auditor General of India (CAG).“Kerala’s revenue has now increased to over ₹1 lakh crore—State’s own tax and non-tax revenues combined. Fiscal deficit is within the limits. In the case of debt-to-Gross State Domestic Product (GSDP) ratio, Kerala had closed in on the 39%-mark during the COVID-19 pandemic.
It now stands at 33.4%. The pattern of the past 25 years shows Kerala’s total debt doubles or increases by at least 90% every five years. At that rate, it should have escalated to ₹6 lakh crore now, but it stands at ₹4.8 lakh crore.
Originally reported by The Hindu. This story has been edited and re-presented by BRIC Team.
