T’puram: Finance minister TM Thomas Isaac told the assembly that government is planning to reorganize sand and granite rock quarrying activities to bring them under its direct control. This was a major proposal for improving non-tax revenue and Isaac had mentioned it in the medium-term fiscal policy he submitted in the House along with budget documents. He didn’t say how government plans to procced with the proposal.
In his reply to the points raised by members during budget discussion, Isaac rejected opposition claims that LDF government has pushed state into a debt trap. There’s nothing wrong in periodic increase in debt, he said.
“State’s debt liability was Rs 40,000 lakh crore in 2006. It increased to Rs 82,000 lakh crore in 2011 and Rs 1.6 lakh crore in 2016. Now, it’s Rs 3.3 lakh crore. The borrowing limit is fixed by Centre. State cannot borrow beyond that limit. There are scientific methods to ascertain whether the liability increase is affordable or not. Statistics show that loan liability of state is sustainable,” he said.
He said there was no valid reason for CAG’s surmise that the growth rate is likely to fall on account of the dip in capital investment. “Infra development works worth Rs 19,000 crore are taking place through KIIFB. This is capital expenditure. It will lead to growth of economy,” he said.
Isaac repeated his budgetary promise that pay revision for government staff will be implemented with effect from Apr 1. “It’s expected that pay revision report will be available before Jan 31. Government will issue orders in advance so that model code of conduct won’t be a hindrance,” Isaac said.
The minister will hold a meeting with Kollam MLA to address complaints that the district didn’t receive its due in the budget. A special package will be prepared for road development in Kollam.
Isaac said pay revision for college teachers, as per UGC norms, will come into effect from Feb 1. Anomalies in pension revision is being scrutinized by a committee. Pensioners’ problems would also be solved in a timely manner, he said. Isaac announced additional projects worth Rs 498 crore, taking the revenue deficit for 2021-2022 period to Rs 1,804.69 crore. tnn