Kerala’s fiscal excesses are unforgivable | Business Line

Kerala’s fiscal excesses are unforgivable | Business Line

Kerala’s Sinking fiscal boat

This refers to Pulapre Balakrishnan’s article “Kerala’s fiscalexcesses are unforgivable”(October 15).
The indictment of the ‘institution of political leadership’ in Kerala which has
evolved over time which respects no masters other than the business interests(these
two words are used in a restricted sense and I have no special dislike against
entrepreneurs!) which feed them, is well deserved. Permit me to recall my own
observations on the subject in an article published immediately after the first
‘Emerging Kerala Festival’. I wrote:
“There is a felt need to trim Kerala’s ambitions and tailor the state’s projects and programmes in
such a way as to harmonise them with resource availability and the state’s
needs at this stage of development. The memory of the failure of a small
country Cyprus which suffered from an over-sized banking sector (some 8 times
the size the country needed) is fresh in our minds. Kerala’s ambitious programs
to go ahead with unaffordably high cost mass transportation infrastructure and
heavy external(read borrowed) investment in projects like new airport/s,
monorail etc  by itself can drag the state into a debt trap. Kerala should review its ambitious projects involving massive investments dependent on borrowing and investments from outside.”
. M G Warrier, Mumbai



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