The Hindu Business Line : Kerala public debt at Rs 41,709 crore

KERALA'S public debt stood at Rs 41,709 crore as on March 31, 2005. However, the Government was able to contain the annual growth of debt at 11.37 per cent last year, which was the lowest in the last 10 years, according to the Finance Minister, Mr Vakkom Purushothaman.

He told newspersons on Tuesday that in 1999-2000, the last year in office of the previous Left Democratic Front (LDF) Government, the State's debt grew by 28.5 per cent and stood at Rs 23,918 crore.

During the first year of the current United Democratic Front (UDF) Government, the growth in debt came down to 18.55 per cent. Though it again went up to 20.58 per cent in 2003-04, the Government could bring it down to 11.37 per cent last year, the Minister said.

He added that as long as pension, salary and interest payment claimed close to 92 per cent of the revenue income, the public debt was bound to grow.

However, the interest burden could be reduced to some extent by swapping high interest-bearing loans with low-cost loans, he said.

The Government's annual repayment liability towards loans, both principal and the interest, is Rs 3,196.92 crore in the current year. This works out to an average monthly commitment of Rs 266.42 crore.

The Minister said that the State's revenue income increased by Rs 1,053.36 crore in 2004-05 compared to the previous year.

The Government could also mobilise Rs 934.38 crore under the National Savings Scheme during the year, which was more than what could be raised in 2003-04. The Minister said all Treasuries in the State, except in Kattapana, had been computerised and the Government had also sanctioned new Treasuries.

Besides, teller system had been introduced in some treasuries for the benefit of pensioners. The commercial investigation wings in the districts detected tax evasion of more than Rs 800 crore last year.

The Government has initiated steps to open 34 new check-posts at various places in the State.

On the functioning of the VAT system in the State, the Minister said that the prices should have come down in the case of more than 100 items in the new regime.

However, there have been instances of prices having been raised before accounting for tax. Since the Government could do little in the matter, it was planning to involve consumer forums to spread awareness about the practice, the Minister said.

The tax collection under VAT showed a slight decline in the first two months of the current year. But there might not be any shortfall in collection for the whole year, the Minister said.

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