Idukki (Keralam), Sep 25 (PTI) Keralam Chief Minister V D Satheesan on Friday flagged the state’s low capital expenditure and high committed expenditure, saying these posed major challenges to its finances.
Capital expenditure was a key aspect of any economy and should result in asset creation for the future, said Satheesan, who also holds the finance portfolio, speaking at a function here.
However, Keralam’s capital expenditure was much lower than the national average and also compared with other states, he said.
The CM said around 80 per cent of the revenue received by the state went towards committed expenditure, including salaries, pensions and interest on loans.
“If the state gets Rs 100 as revenue, Rs 80 goes towards these expenses. Development and welfare programmes have to be carried out with the remaining Rs 20. This is the biggest problem before us,” he said.
Satheesan said governments normally resorted to raising taxes to increase revenue, but there were limitations in doing so now, as the Goods and Services Tax (GST) Council decides tax rates.
He stressed the need to attract more investment and increase financial and economic activity in the state to generate additional revenue and improve its fiscal position. PTI LGK SSK
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