The Hindu Business Line : Kerala Govt rules out drastic changes in spending pattern

THE State Finance Minister, Mr K. Sankaranarayanan, has said that the spending pattern in vogue in Government cannot be tinkered with overnight for fear of likely adverse impact on funds committed to developmental activities and social obligations.

Speaking in the State Assembly during the course of the debate on the Kerala Finance Bill, Mr Sankaranarayanan said the Government did not, therefore, intend to bring about a cut in spending on salaries, pensions and development activities. It is, however, open to consultations on the issue of restoring commutation benefits enjoyed by Government employees.

The Money Lender's Act will be amended and relevant rules strictly enforced to check the growth of the so-called `blade' companies, the Minister said.

The Government will also work on ways to improve tax collections from gold sales. If it were found that collections had suffered due to reduction of compounding rates, the anomaly would be set right.

The Minister also observed that tax on aviation turbine fuel was cut on promise by airline companies that air fares in the Gulf sector would be reduced. However, that has not happened. The matter will now be taken up with the Centre.

Farm loans: The Government proposed to write off agriculture loans of up to Rs 50,000 in view of the hardship being faced by farmers in the State, both from falling prices and natural calamities.

The Centre's assistance would be sought in this context, the Revenue Minister, Mr K.M. Mani, told the Assembly. He is a member of the Cabinet sub-committee that visited the worst-hit Wayanad district where a number of farmers have committed suicide. The committee will now head for New Delhi for a meeting with the Prime Minister.

Apart from Mr Mani, the committee comprised the Finance Minister, Mr K. Sankaranarayanan, and the Agriculture Minister, Ms K.R. Gowri.

Meanwhile, Ms Gowri announced that the Government was exploring the option of providing free power to farmers in the drought-hit areas. This, however, would entail an additional burden of Rs 14 crore on the exchequer; the annual budgetary allocation being just Rs 3 crore.

Telemedicine project: According to the Health Minister, Mr Kadavoor Sivadasan, telemedicine facilities would be introduced in five medical colleges, 14 district hospitals and two taluk hospitals in the State.

These hospitals would be in turn linked with the All India Institute of Medical Sciences, New Delhi, the Amrita Institute of Medical Sciences, Kochi, and the Sri Chithira Tirunal Institute of Medical Science and Technology, Thiruvananthapuram.

The project envisages an investment of Rs 15 crore, the Minister said while replying to debate on demands for grants for the Public Health Department.

Rainwater harvesting: The Water Resources Minister, Mr T.M. Jacob, has said that the Government will consider making rainwater harvesting systems mandatory for all existing buildings in the State. He cited a Tamil Nadu Government model in this regard.

Replying to questions, Mr Jacob said an amount of Rs 3.5 crore has been set apart for rainwater harvesting activities during the current financial year and further provision would be made for another Rs 10 crore under this head.

Kasaragode, Chirayinkeezhu and Kodungalloor were the three places identified found to have been worst affected by groundwater depletion.

Private funds in tourism: The Government intends to promote private sector participation in tourism development since funds were in short supply, according to the Minister for Information and Parliamentary Affairs, Mr M.M. Hassan.

Exotic locations such as Bekal, Wayanad, Muzhappilangad, Dharmadom and Munnar has been identified for development of tourism infrastructure, the Minister added, speaking on behalf of the Tourism Minister.

Maveli outlets: The public sector Kerala State Civil Supplies Corporation (Supplyco) proposed to open `Maveli' fair price shops in 22 gram panchayats in order that essential commodities are made available at reasonable prices during the impending festival season.

This was announced in the Assembly by the Minister for Food and Civil Supplies, Mr G. Karthikeyan. Supplyco also plans to open more petrol pumps in the State, the Minister added.

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