Despite crisis, Kerala FM refrains from tax hike

This is not the time to cut expenditure, levy higher taxes, says Balagopal

Despite the severe financial crisis faced by the government, Finance Minister K.N. Balagopal did not announce any new tax proposals in his maiden Budget, saying that this is not the right time to reduce expenditure and levy higher taxes. “Demonetisation, implementation of GST without much preparation, Cyclone Ockhi, floods, first and second waves of the pandemic and the resultant economic slowdown have all adversely affected State revenues. Revenue growth rates have fallen to the lowest levels in the recent past,” the Minister said. When economic slowdown and natural disasters ravaged the State, the government could have stepped aside by reducing expenditure. “But, that is not the approach of the Left Democratic Front. During a crisis, the Left’s way is to help people, even by borrowing. The first Pinarayi government has done that and this government will also follow the same policy,” he said.