White paper on finance


The state government today placed a white paper on the financial condition of the state. The white paper puts the previous LDF scanner for lack of financial planning. The document reiterates the earlier stand adopted by UDF government in the modified budget that the surplus in treasury does not actually reflect the actual financial condition of the state.
The rate of financial growth had hit new lows during the tenure of the previous LDF government, which presents an anxious picture. The investment for non-developmental activities became high and the financial burdens puts the state in the darkness. The tax revenue progressed only because VAT was implemented in the state.

Major factors which resulted in additional financial liability are pension and pay modification of the government employees. An additional burden of 4825 crore was created as a result of these factors. The ration subsidy is presently creating an liability of 266 crore to the state exchequer. The financial liability for the current fiscal stands at 10,197 crore and the financial burden due to the budget is 5064 crore.
The white paper says the financial liabilities would upset the track of the financial stability of the state. The white paper in a way becomes a political work, carrying out a clear attack against the previous LDF regime.
Dr Thomas Issac, former finance minister stated he would be presenting an alternative white paper before the assembly on Wednesday.

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