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Sunday, October 6, 2013

Kerala's debt trap


Photo: Lalu's conviction

The verdict is a major blow to Lalu Prasad. The judgment has great significance at a time when the ruling UPA government and the BJP are locked in a war of words over the ordinance with regard to convicted politicians. It also sends a strong warning to corrupt political leaders.
K.A. Solaman
The Hindu published on 1-10-2013

All day lotteries and all time liquor sale have not saved Kerala’s financial scenario. On the completion two and a half year in office the Ommen Chandy Government has not adopted a concrete strategy to combat the debt trap. The Finance Minister Mani is seen more interested in preaching “adhwanavarga sidhantham”(working class ideology) than to take steps to boost tax collection. He was, for quite long, dreaming of becoming the CM in coalition with the other front.  Kerala needs a bail-out package from centre and the CM with his disturbed mind for the whole tenure has not done anything to get assistance from the Centre.  Chandy and Mani are not confident of achieving the targeted tax collection. Instead the latter is targeting the former with his loose-tongued assistant chief whip P C George.


 Measures like introduction of e-filing of return under sales tax act and corruption free check posts are not in the scene. Compliance from the bureaucracy for tax collection is poor as the ministers themselves give protection to tax evaders. However, the Police and the Road Transport Department are doing all the abject things to squeeze vehicle owners but the amount so collected  is inadequate  to meet the ministerial extravagance.


The Union Finance Minister permitting Kerala government to go for market borrowing also widens Kerala’s debt trap. And if this trend persists even a new born in Kerala would become a debtor for several thousand rupees.



K A Solaman 

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