Treasury curbs to be relaxed from today

By Our Special Correspondent

THIRUVANANTHAPURAM, FEB. 25. The Finance Minister, Mr. T. Sivadasa Menon, today said that the State Government had decided to relax the current curbs on treasury withdrawals from Monday, but warned that the State was going through a difficult phase.

Addressing a meet-the-press programme, the Minister asserted that there was no basis for the charge that the State had fallen behind in terms of development. At a time when the national growth rate was falling, the State's growth rate, per capita income and the State's domestic product had gone up. His budget presented to the Assembly the other day should be viewed in the backdrop of the country's economy. The State was a problem State, with low per capita income, high living standards and high density of population, producing hardly 30 per cent of its needs. But with good financial management, he was able to avoid a total ban on treasury, he said.

In reply to a question, Mr. Menon said he had not played up to the gallery in his Budget speech. ``I have made no tall promises and no hollow claims on the eve of the elections,'' he said. Mr. Menon said the State Government had decided to present an early budget in anticipation of the Assembly elections. It also wanted to avoid a constitutional deadlock, he added.

Mr. Menon said the Economic Survey presented to Parliament the other day was shocking. It reveals the precarious financial position of the country. Except for the administration, all other sectors are being privatised. From April 1, import duties would be relaxed on 700 items under the WTO agreement. These are likely to have a cascading effect on the State's economy.

He clarified that the State's public debt would be Rs. 23,000 crores and the final liability would be known only after March 31. However, he said the growth in public debt had remained static at 18 per cent during the entire decade beginning from 1991.

Referring to the charge that revenue expenditure had gone up exorbitantly, Mr. Menon said this had taken place because the 40 per cent allocation given to panchayats were grants-in-aid and this was treated as revenue expenditure.

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Section  : Southern States
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