State facing severe financial crunch: Opposition

THIRUVANANTHAPURAM: Ringing alarm bells once again on the severe financial crunch staring at the state, Opposition leader Ramesh Chennithala took strong exception to the government remaining a mute spectator without probing ways to tide over the crisis. In a statement, Chennithala was too critical on the continuing loot of traders in the name of  GST, while the government is unable to checkmate it. He said it is a matter of serious concern that the government is not resorting to austerity measures even now. 

“After availing of loans at the optimum level earmarked for the state and indulging in a spending spree, the government is remaining silent now. The government is heading for pathetic depths financially, without being able to find money to even meet the routine expenses. As far as the state Finance Minister is concerned, he has taken an anticipatory bail by stating that the financial crisis is going to affect the next annual budget of the state,’’ he blamed. 

“Treasuries are functioning now only for a namesake. If things move like this, the state may witness treasury offices downing the shutters as seen in 1998-2000 period,’’ the Opposition leader said.
He said development works have come to a grinding halt in the state. “Contractors are not bidding for any new works. Rs 1,400 crore is due to the contractors from the government for works already completed. “A financial crisis like this was squarely borne from the slackness of  the government in addressing the lapses in GST implementation and controlling excessive spending. Finance Minister Thomas Isaac was assertive in describing GST as a panacea of  all the financial woes of  the state.

But it has been proved otherwise. While  the Congress was adamant on a maximum tax slab of 18 per cent in GST, Thomas Isaac stood supportive to the BJP Government’s agenda of  imposing  a hefty 28 per cent at  the high end,’’ he noted.According to the Opposition leader, GST implementation and the fallout experienced in the fiscal route have smashed the financial position of  the state. 

“According to reliable information, the state has lost Rs 6,000 crore as tax revenue till October this year, after GST was implemented in the state. After five months since the GST regime has come to stay, Kerala has not come up with adequate infrastructure to take it forward and keep the pace,’’ he said.“Traders are looting customers to their liking but the collected GST is not reaching the state’s coffers either. There is none to question tax evasion going on through an unrestricted transfer of goods from other states also.  The net result is people are forced to succumb for a kill by traders and there is no mechanism to reverse the heavy drain from the state exchequer too,” he said.