The Hindu : Front Page : Finance Commission arrives today for talks

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Finance Commission arrives today for talks

Special Correspondent

Finance Minister holds pre-budget consultations

Finance Minister T.M. Thomas Isaac

THIRUVANANTHAPURAM: The 13th Finance Commission, which arrives here on Sunday, will hold discussions with Chief Minister V.S. Achuthanandan, Ministers and heads of departments here on Monday morning.

The commission will hear representatives of local self- governments and industrialists in the afternoon. An interaction with political parties of the State is scheduled from 4.30 p.m. Other organisations will get an opportunity to submit representations from 6 p.m.

The commission will visit a few selected panchayats and areas being protected with seawalls on Tuesday.

Zero revenue deficit

Finance Minister T.M. Thomas Isaac said here on Saturday that the State would be able to achieve a zero revenue deficit by 2009-10 if the commission conceded its demand that the State’s share of Central taxes be fixed above three per cent. The State government alone could not shoulder the burden.

“The State government concedes the importance of bringing down the revenue deficit. However, essential expenditure cannot be cut,” he said.

Addressing a pre-budget consultative seminar attended by academics and experts, the Minister said the government would increase expenditure in infrastructure, especially in information technology and tourism. By the time the country was out of recession, these should be ready. The private sector could not be expected to invest in infrastructure during a recession.

He said the Centre was not being helpful in increasing the ability of the State to invest. Though its borrowing limit for the current year had been increased by Rs.800 crore, the State government would not be getting anything out of national savings, originally estimated to fetch Rs.2,000 crore.

Participants of the seminar agreed with the view that government investment in infrastructure ought to be increased.

There was a need for rehabilitation of Gulf Malayalis who would be forced to return because of the economic slowdown in the Gulf countries.

Agro-industries

The budget should focus on welfare and development of agro-industries. Introduction of a universal old age pension scheme should be considered as the procedure to get welfare pensions was cumbersome.

Vice-chancellors of various universities called for a higher outlay in the budget for higher education.

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