Financial position has improved: Minister

By Our Special Correspondent

THIRUVANANTHAPURAM, NOV. 17. The Finance Minister, Mr. K. Sankaranarayanan, claimed that the financial position of the State had improved over the past six months.

At a press conference here today, he said that the State Government had been able to clear 30 per cent of its liabilities, which were the legacy of the previous Government.

The Sales Tax collection was higher now by Rs. 104 crores, compared to the previous six months. Some savings were made through austerity measures though reduction of expenditure could not be achieved in several sectors. Efforts to reduce expenditure would, however, continue.

The Minister said the State Government would try to achieve 80 per cent Plan expenditure in the current financial year. Steps were under way to normalise treasury transactions.

He said the income from check-posts over a six-month period had increased from about Rs. six crores to more than Rs. nine crores. Arrears in payment of welfare pensions had been cleared to the level promised during Onam.

The arrears in payment of Provident Fund dues of up to Rs. 3 lakhs could be cleared by the end of next month and restrictions on payment of dues to pensioners would be lifted.

He said the bills of road works contractors up to October 1999 had been cleared. Bills of building contractors pertaining to the last calendar year had also been cleared. The use of NABARD funds in the road sector would be doubled this year. A sum of Rs. 35 cores had been released for works under the MLA Development Fund Scheme.

The Minister said the previous Government had left three instalments of Plan allocations to the panchayats unpaid. The present Government would give the second instalment to the panchayats this week. Steps were underway to release the salaries of newly appointed Plus Two teachers.

Release of funds for various Centrally-sponsored schemes, foreign-aided schemes, noon-meal scheme and stipends, scholarships and other welfare schemes had been exempted from treasury restrictions. The monthly ceiling for schemes being implemented by the State Government departments had been increased to Rs. 25 lakhs.

He said the State Government was trying to channel funds from various sources. However, no conditions harmful to the State would be accepted to get assistance from the Asian Development Bank.

He said Rs. 1,200 crores would be required to pay five DA instalments due to the Government employees. This could be paid only when the financial position of the State improves further. There was no ban on appointments and 4,650 persons had been taken into Government service during the past six months. Curbs were introduced only in creation of new posts.

He said the Government had gone back on imposition of turnover tax to help the business sector which was facing a slump. He said the UDF decision to dismantle the cooperatives formed for running toddy shops should be implemented at an opportune occasion. The Government proposed only phased introduction of prohibition. Strong measures would be taken to check the sale of illicit liquor.

Mr. Sankaranarayanan said the UDF convener, Mr. Oommen Chandy, was not intervening in the administration. However, as convener, it was his duty to convey the people's views on various matters to the Government. It cannot be termed as interference.

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Section  : Southern States
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