THIRUVANANTHAPURAM: The Left Democratic Front government will focus on infrastructure development during the next three years with a view to creating jobs and attracting investments. According to Industries Minister Dr. Thomas Isaac, the additional overseas remittances of an estimated 80 billion rupees that the state hopes to receive annually on account of the rupee depreciation could be channeled to major infra projects like the mother port in Vizhinjam, international airport in Kannur and the new north-south highway.
“By the next year, the spending on infrastructure development will go up to five percent of the state’s gross domestic product from the existing one percent. We will raise money from the market and spend it on infrastructure development,” he said.
The government plans to allow agencies like the Kerala Water Authority, Infrastructure Kerala Ltd. (InKEL), the Roads and Bridges Development Corporation, the Tourism Resorts (Kerala) Limited and the Fisheries Corporation to raise money through borrowings to develop infrastructure.
“The focus on infrastructure development will help us combat the effects of the global financial market meltdown and this could well be turned into an advantage. It’s the ideal time to shift focus,” the minister said.
He also demanded that the Reserve Bank of India increase interest on NRI deposits to attract foreign exchanges in the Kerala banks. The government’s tax collection was half the amount that it should actually receive. “We will ensure that tax receipts were improved substantially,” he said. “If we have to brace up for the effects of the global crisis, we have to ensure that the government has money to spend.”
To beat recession, the state should be allowed to borrow about 10 billion rupees a year from commercial banks at market rates.
