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Budget discipline vital,says Aryadan

Transport Minister Aryadan Mohammed lamented the tendency of the State Cabinet to regularly sanction out-of-budget expenses for various purposes.

The seminar was to discuss the points the State should argue before the 14th Finance Commission, which had scheduled an interaction with the State government and political parties here on Wednesday as part of the consultative process prior to fixing its award for each State in the country

He said it was also necessary to examine why tax collection was not up to expectations of late. Consumer spending in Kerala had not been hit by economic slowdown since the foreign remittances had actually shot up due to rupee devaluation and the families who received the remittances were spending more than what they were before.

Like several of the other States, Kerala too had the demand that a higher share of the Central taxes than at present should be divided among the States, he said.

KPCC president Ramesh Chennithala, who inaugurated the seminar, said that Kerala’s share of the divisible pool of the Central taxes had come down progressively from the level of 3.05 per cent under the award of the 11 Finance Commission to 2.34 per cent under the award of the 13 Finance Commission.
 

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