The Hindu Business Line : Kerala to focus on raising capital expenditure

Govt’s priorities
Fiscal position has improved over the last two years due to significant increase in revenue receipts
Stress on controlling administrative expenditure, bring in more investments

Our Bureau

Thiruvananthapuram, May 21 The Left Democratic Front (LDF) Government in Kerala, which is into its third year in office, will focus on raising capital expenditure in the coming years in order to develop basic infrastructure.

This was necessary to attract more private investments to ensure the overall economic growth of the State, according to Dr Thomas Isaac, Finance Minister.

He said here on Wednesday that the fiscal position of the State has improved over the last two years thanks to significant increase in revenue receipts. What was now needed was controlling of administrative expenditure and more investment in infrastructure development, he added.

The Government is targeting doubling of capital expenditure from one per cent of the gross state domestic product as of now to two per cent at the end of the current year. The capital expenditure was Rs 900 crore in 2006-07, which rose to Rs 1,500 crore last year. This is expected to touch Rs 3,000 crore at the end of this year.

The process of infrastructure development is being set in motion this year with a slew of projects having been identified, which include a Rs 750-crore drinking water project, fishing harbours costing Rs 250 crore and rail over-bridges at an outlay of Rs 200 crore. These apart, the Government has to find resources for acquiring land for the proposed airport in Kannur and expansion of Kozhikode airport.

Dr Isaac said that there was a need for comprehensive administrative reforms in all the departments under the Finance Ministry. In the Taxes Department, the process had been initiated with the modernisation of the Walayar check-post and work was on at the Manjeswaram check-post. Besides, social audit would be taken up in all treasuries.

Another measure is delegation of financial and administrative powers to public sector undertakings. This has already started in the case of Kerala State Financial Enterprises.

The company now need not get back to the Government for further sanctions after its annual budget has been approved. Similarly, it will have freedom in the matter of opening of more branches. The system of autonomy would be extended to other PSUs as well, the Minister said.

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