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Our Bureau

Kochi , Feb. 4

THE CII-Kerala has said that the Kerala Budget 2005-06 lacks direction with no concrete proposals to check the alarmingly increasing revenue deficit.

The total debt of the State has increased four-fold in the last decade from Rs 10,113 crore in 1995-96 to Rs 37,452 crore in 2003-04. A significantly large proportion of borrowed funds are being utilised for the current revenue expenditure rather than the capital expenditure. The postponement of effacing of revenue deficit from 2007 to 2009 is not a healthy sign, a press release issued by CII said.

The Budget did not address the issues of negative growth in the primary and secondary sector as revealed by the Economic Review 2004. There are no proposals to catapult the growth in the agriculture sector with a negative growth rate of 2.88 per cent and manufacturing sector with a growth rate of 5.6 per cent in 2004-05 as against a growth rate of 6.02 per cent in 2003-04.

However, CII statement pointed out that the acceptance of proposals mentioned in the white paper on VAT is a welcome step. The increase in the presumptive tax limit from Rs 20 lakh to Rs 50 lakh, set off for entry tax, exports being zero rated, reduction of interest on delayed payments and self assessment scheme, credit for opening stock etc are steps in the right direction.

Allocation of funds in the field of education, health facilities, power projects, computerisation of offices, construction of bridges etc augurs well for the development of the State.

Referring to some minus points in the budget, the CII said that the revenue deficit, as a percentage of the gross state domestic product (GSDP) is 3.59 as against the all states figure of 2.6. There has been no serious concern show to address the snowballing problem.

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