Kerala facing financial difficulties due to absence of GST compensation
The 13th session of the 15th Kerala Legislative Assembly session began on Friday with Governor Rajendra Arlekar's maiden policy address. The governor highlighted that the state government is facing financial difficulties due to the absence of GST compensation and reduced grants.
"Kerala's share in the central divisible pool has steadily declined from 3.875% during the 10th Finance Commission to 1.925% under the 15th Finance Commission. The cessation of GST compensation and revenue deficit grants coupled with restrictive conditions on Centrally Sponsored Schemes and new borrowing constraints have posed significant fiscal challenges for my state government," he said.
The Governor said that the government is committed to building 'Nava Keralam' with high-quality infrastructure, a knowledge-based economy, quality education and healthcare.
He also highlighted the series of devastating disasters faced by Kerala in the last decade.
"Despite the challenges posed by unprecedented floods of 2018 and 2019, Cyclone Ockhi and the recent Meppadi landslide, Kerala's disaster management model, rooted in community resilience, technological integration and proactive governance, has garnered global recognition as a beacon of effective crisis response. My government is committed to rehabilitating all those affected by the Meppadi landslide by ensuring the completion of the township within one year", he said.
