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Wednesday, May 16, 2001

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Empty coffers a big challenge to new Govt.

By Roy Mathew

THIRUVANANTHAPURAM, MAY 15. The empty coffers will be the biggest challenge before the new Government as it assumes office on Thursday.

The State is currently on over-draft from the Reserve Bank of India. This would have to be cleared in a few days time. Thus within days of assuming office, the Government will have to work out a short-term strategy to avoid closure of treasuries and a long-term strategy to wriggle out of the resource crunch and mounting debts.

By all indications, Mr. A.K. Antony, will be coming in with a larger contingent of Ministers and personal staff. The Finance Department will have to find funds for renovating and furnishing existing Ministerial bungalows and find new ones for the additional Ministers. (It is to be noted that the previous Government had reduced the number of Ministers from 19 to 14 in view of decentralisation of power). This arrangement as well as the distribution of portfolios are proposed to be changed by the coming Government.

In two months, the Government will have to prepare a revised Budget for the current year. This has to set the contours for the development strategy for moving the State out of near stagnation in the agriculture and industrial fronts. The services sector will have to be given a fillip. Efforts will be needed to increase non-tax revenue, as scope for raising tax revenue is limited.

It will be an uphill task for the Government to catch up with the neighbouring States in Information Technology and industrial development. The projects of the previous Government, which did not click, would have to be reviewed and new strategies worked out. It is going to need professional assistance and a fast moving administration to keep pace with the fast technological developments.

A strategy will also have to be worked out to improve productivity of agricultural crops and their diversified use and marketing. Farmers will have to be encouraged to assimilated modern technology. Besides, it may become imperative on the Government to stop fragmentation of agricultural holdings.

On the tourism sector, the Government will have to see that the gains made so far are not lost and that the course of development is sustainable. The preservation of the State's physical and cultural environment should get priority.

The UDF is planning for substantial changes in the excise and educational sectors. Several vested interests are already working overtime to see that the new Government's policies suit them. Unless the Government treads carefully, it may fall into the into the traps similar to the ones that closed in on the LDF Government leading to its fall.

The LDF Government had initiated several steps to improve the road, housing, power and other infrastructure in the State. Considerable funds have been tied up for these projects. The new Government will have to show the wisdom to pursue them vigorously instead of neglecting them as the babies of the previous Government. Developmental projects for the poorer sections of society will need special attention in view of the effects of liberalisation.

Corruption and lethargy have gripped many areas of administration. The Government will have to clean up the stables and improve efficiency. However, indications are that some tainted politicians and those fighting vigilance cases would be included in the Ministry. The resulting controversies and court cases are likely to take away much attention and time of the Government in the coming months. Mr. Antony will have to see that his Government does not get embroiled in unsavoury controversies and court cases to the detriment of its efficiency and smooth functioning.

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