Kerala - Thiruvananthapuram   

Rs.3,000-crore additional expenses next year: Isaac

Thiruvananthapuram: The State will have to incur an additional expenditure of Rs.3,000 crore next financial year in view of the price hike triggered by the increase in the prices of petroleum products, Minister for Finance T.M. Thomas Isaac has said.

Replying to questions in the Assembly on Thursday, Dr. Isaac said the Kerala State Road Transport Corporation (KSRTC) would have to bear an additional expenditure of Rs.60 crore in view of the hike in petroleum products.

The rates of steel and bitumen had been revised. A sum of Rs.350 crore was needed to pay one instalment of dearness allowance (DA) to government employees.

Dr. Isaac said the government would soon announce steps to curb wasteful expenditure after examining the measures taken in the last 15 years.

The hike the prices of petroleum products could not be justified in any way.

The government was of the view that setting up Price Stabilisation Fund would help the Centre to avoid such hike in prices of petroleum products.

The sales tax on the import of petrol and diesel had been reduced to 2.5 per cent. For other petroleum products, it was five per cent. The State would lose revenue due to this, he said.

In a written reply, Minister for Transport Mathew T. Thomas said the government was considering the proposal for introducing flexi-fares in Fast Passenger and other super class services of the KSRTC.

The inspection wing of the KSRTC would be strengthened to plug loss of revenue.

The corporation’s revenue in June was Rs.2.60 crore. Mr. Thomas said trial run of the online reservation had commenced and it would soon be introduced.

The KSRTC buses were involved in 817 accidents last financial year. The corporation had to pay Rs.44.20 crore as compensation to accident victims during the last five years, the Minister said.

Mr. Thomas, in reply to another question, said a technical committee was carrying out the scrutiny to introduce smart card for driving licence and registration certificate (RC) book. Stern action would be taken to curb road accidents.

The Home Minister had also given directives to this effect to the police.

Permits for private buses would not be sanctioned in the nationalised routes.

The licences of 14 driving schools were cancelled following detection of irregularities. Driving licences were issued to 4,99,881 persons in various categories last year, he said.

Steps were being taken to set up offices of Joint Regional Transport Officers in 10 taluks which do not have them.

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