Battered fiscs to welcome new chief ministers in election states

FROM PAGE 12

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Polling officials during vote tabulation at a counting centre in Murshidabad district, West Bengal.

(PTI)

grew by an average 6.5% per year, even as its GSDP grew by 8.5% annually.

V.D. Satheesan, leader of the opposition in the Kerala Assembly and a leading candidate for chief ministership, blamed this on poor administration and high leakages. “The state’s tax from gold was ₹500 crore when gold price was ₹4,000 for 8 gm. Now the price is over ₹1 lakh but tax collection is still ₹500 crore,” he said.

Lower revenue, higher expenses: The inability to raise resources is compounded by the state’s high committed expenditure— payments for salaries, pension and interest. Nearly 70% of its revenue receipts go to funding the committed expenditure. The state’s capital expenditure is just 1.4% of its state GDP and is among the lowest in the country.

Debt trap: Almost half of its borrowings go towards meeting its revenue expenditure. Not surprising that its revenue deficit is a high 2.5% of its GSDP in 2024-25.

Jobs, jobs, jobs: By not investing for the future, the state has not been able to create enough jobs, especially for its educated youth—forcing them to leave the state. “In the last five years we have brought in investments worth ₹3.3 trillion and close to 15 lakh jobs have been created,” said Rajeeve P., minister for law, industries and coir in the Left Democratic Front. (LDF) government, a claim dismissed by the opposition.