Union finance minister Pranab Mukherjee on Sunday said that Kerala had landed in a debt trap because of financial mismanagement by the CPI(M)-led Left Democratic Front government in the last five years.
West Bengal was in an even worse situation and, if the LDF slogan of ‘continuity’ was heeded, then Kerala would end up in a similar situation, he said.
Talking to reporters at the KPCC headquarters here, Mr Mukherjee quoted statistics to show that Kerala’s fiscal deficit was high when compared to neighbouring Tamil Nadu.
As of March 31, 2010, the outstanding debt of Kerala was `70,193 crore. “I have to say that the state is in a debt trap,” he said.
Mr Mukherjee said that the LDF government in the state had miserably failed to implement the Plan in the last five years. Every year, there was a shortfall of almost `300 core in Plan implementation, he said.
As far as externally aided projects were concerned, Kerala had spent only ` 648 crore of the `1,448 crore that was allotted. The state had spent only `81 crore of the `485 crore allotted for JNNURM, said the finance minister. He said that West Bengal was running on overdraft for 294 of 365 days. “If the LDF slogan is correct, then West Bengal should have been the most developed state in India,” he added.
Answering a question, Mr Mukherjee said the UPA was taking strong steps to unearth black money within the country. He also termed as ridiculous the allegation by Kerala Chief Minister V.S. Achuthanandan that UDF leaders had stashed away black money in Swiss banks.