Kerala's revenues in 'bad shape', says industry body

Kerala's revenue situation is in a "bad shape" but the development initiatives announced in the state budget will boost growth, an industry body said today.
Hours after the Congress-led UDF government in the state presented its final budget,the Cochin Chamber of Commerce and Industry said Kerala's growth rate has dipped.
"We are seriously concerned about the fact that the state's revenues are in bad shape.
"Kerala registered a growth rate of 6.67 per cent in 2014-15 which is lower than 6.82 per cent recorded in 2013-14," the chamber's President C S Kartha said in a release here.
However, he appreciated the government for giving more emphasis to the agriculture sector in budget 2016-17.

"The move to fix a Minimum Support Price for rubber, the allocation for organic farming and the tax concessions to the farming sector are very timely," Kartha said.

The chamber also expressed happiness for mentioning several pending infrastructure projects in Kochi, the business hub of Kerala, in the budget.
"They include flyovers at Vytilla, Atlantis and Kundanoor, the third phase of Airport Seaport Road, and a flyover at Atlantis Junction.
The government's move to upgrade existing infrastructure in the state is timely and appreciable," the Chamber said.
It said the budget has noted the need for effective initiatives in the energy and waste management sectors.

"This is commendable. However, we feel that the allocations made for this will be inadequate to meet the challenges that lie ahead," it said.