Dear all
The floods have receded in Kerala and the Mahabali’s annual visit during the Onam day on 25th will be marked with pain. One thing that he should be happy upon is the Unity of Keralites and the overwhelming support that its people got from other states and the central government. This reiterates his principle of equality that he cherished during his mythical rule.
While the floods have receded, new flood gates of challenges have opened up. With nearly 50000+ homes to be reconstructed and nearly 10000 km of roads damaged, the exact cost in time, effort and money for reconstruction is horrendous. The service sector which contributes to the tune of 64% of its GDP (Kerala’s contribution to the national GDP s nearly 4 %) would require at least a year of time to recuperate and generate wealth. The orthodox estimate of reconstruction and rehabilitation(R&R) of nearly 2600 Crore is minuscule compared to the central government aid of nearly 600 crores.
It is in this context certain arguments put forward and debated needs a through thinking. Firstly whether the 700 crore pledged by the UAE is to be accepted or not. The strictures followed in the aftermath of the Tsunami by the previous government mandates a polite ''No'' to foreign aid due to diplomatic issues. While sentimentalist’s calls for acceptance of foreign aid rather than thinking of the larger manifestation are understandable, we need to think laterally on how to gap the deficit for R&R.
The non-revenue measures like construction of central government support in reconstruction through the PM Awas Yojana and NHAI taking up Road construction are all in the right direction. Similarly, the largesse of the insurance companies in providing hassle-free simple insurance claims and contemplation of soft retail loans by banks redresses the pain to a certain extent. However the suggestion put forward by the Finance Minister of Kerala Mr Thomas Issac on charging a cess on the SGST component of the GST (the tax component in the consumption state in an intrastate trade) is for the GST council to decide opens, it opens up another Pandora’s box. Such sort of measures may be required at least for a shorter period to cater to the exigency of Kerala State but can create an argument that it will create a precedent with other states demanding so as like the recent demand for a cess for sugar to help farmers.
Every fundraising initiatives have its own constraints but what matters is how intelligent leadership tries to annul the gap and come to rescue the needy. While the misplaced pride of some Keralites in comparing itself with social indices, CRISIL reported that Kerala is a worse off state with a higher Debt to GDP ratio( estimated to be above 30 % and above the triggers set through the ‘’Kerala Fiscal responsibility Act 2003 ‘’ and a burgeoning Fiscal deficit to GDP ratio.
Under such circumstance when there is a crisis like situation, what matters more than the political bargaining -which the left rules state don’t have- is pragmatism and statesmanship. Hope the Central Government shows that in this case as a distressed Onam gift kerala be given fiscal incentives and prevent tharoors of Kerala from going to UN.
sanyasi
