Fiscal strain will be eliminated in three years: Finance Minister

Thiruvananthapuram: The financial position of the State will take three years to stabilise, Finance Minister T. M. Thomas Isaac said here on Friday.

Addressing the media immediately after presentation of the revised Budget in the Assembly, the Finance Minister expressed confidence that revenues could be increased through modernisation of accounting procedures and strict tax collection initiatives. Fiscal strain could be eliminated in the next three years by achieving a tax growth rate of 25 per cent a year.

Introduction of Goods and Services Tax, the Minister said, is expected to bring a spurt in tax revenues.

The Minister commented that the increase in tax on commodities such as packaged wheat products and basmati rice and textiles would not be a burden to common man as the rate of tax in Kerala is considerably low in comparison to other States. The increase in tax on goods vehicles (10%), and green tax on vehicles older than 15 years, will not considerably affect the common man, he said.

Though he proposed a restriction on creation of new posts, that will not be apply to creation of posts for new projects.

“The policies of the Government will not be regulatory but welfare oriented,” Mr. Isaac said.