Professor of Economics at the Indian Institute of Management Kozhikode (IIMK) Rudra Sensarma has said that the upcoming Budget of Kerala has to focus on boosting economic growth and plugging revenue leakages, particularly, its own tax revenues and non-tax revenues such as stamp duties and land revenue.
“Kerala’s own revenue collection at 46% is the second lowest among southern States after Andhra Pradesh. The State’s interest payment as a share of revenue receipts at 22% is the highest in south India and much higher than the national average at 14%. Yet, the State is the highest spender at 41% when it comes to non-developmental expenditure of the total disbursement,“ Prof. Sensarma told The Hindu on Wednesday.
He said the employment situation in the State had improved over the last few years. “Barring the lockdown periods, the unemployment rate is lower than before. But to improve investment and production from here on, the government has to realise that the public sector has reached its capacity,” he said.
