THIRUVANATHAPURAM: "Kerala has failed to achieve the Plan target in the past five years, which the LDF government itself has admitted. The debt-GDP ratio of the state is at an alarming high and has reached 29 percent. The borrowing is expanding and the state is unable to manage the financial system through proper fiscal management," Union Finance Minister Pranab Mukherjee has said.
"Why should the people of Kerala vote for LDF then? To continue with the lack of development, for the lack of planning in financial management or for the failure in utilising the Central funds?" asked the Union Finance Minister. The LDF Government has pushed down the state in several counts. The state would have the same plight of West Bengal if the CPM rule extends here, he added.
"After 40 years of rule where has the West Bengal reached? This state tops in non-development, tops with highest debt-GDP ratio and the state runs 294 days in a year on overdraft," Pranab Mukerjee told reporters here on Sunday. He said that the LDF Government has failed in implementing several of the Centrally aided projects, though the projects were sanctioned after discussing them with the state. The Centre had allocated Rs1,448 crore under this scheme in 200809 and the state spending was only Rs 644 crore. In 200910, the allocation was Rs 11,304 crore and the state spent was only Rs 355 crore.
Even the 12th Financial Commission has urged the State Government's to bring down the debt-GDP ratio to 24 percent and only three states have failed to bring this down namely Kerala, West Bengal and Punjab. "Soon the Centre will be appointing a committee to study into the reasons behind the increasing debt in these three states," he added.
Pranab Mukherjee said that the state cannot complain of lack of Centre's support, which is evident from the increase in the Plan outlay. The 12th Finance Commission had set a Plan outlay of Rs 19,607 crore, whereas the 13th Finance Commission has increased the plan to Rs 40,325 crore which is currently operational.
"The state has received larger share from the Planning Commission and the Finance Commission. But it has failed to utilise it," said the Union Finance Minister.
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