Kerala is reeling under severe economic crisis: Thomas Isaac

Thiruvananthapuram, Feb 5 (KNN) Kerala Finance Minister TM Thomas Isaac has asserted that the state is reeling under severe economic crisis.

''The state is reeling under severe economic crisis. The various financial policies implemented by the Centre including demonetisation and GST, and floods were the key reasons for the state’s economic slowdown,'' the Minister informed the Assembly on Tuesday.

Apart from demonetisation, GST and the floods affected the state in 2018 and 2019 which had a negative impact on the financial sector, the centre had too cut down the state’s share of approved loan which worsened the situation, he said.

''The Union government cited an increase in the fund in PF treasury accounts. However, we had expected approval for a loan of Rs 4,908 crore from the Centre during the final quarter of the current financial year, but it gave the approval for only Rs 1,920 crore,” Isaac said.

Commenting specifically on GST, the minister said, “We have not received the compensation from October last year. The compensation being paid every two months will be around Rs 1,600 crore. The corporate tax exemption will also affect the income through tax here too.

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