Bid to paint bleak picture of State’s debt burden: CM

Kerala is part of a country that is in debt and it is illogical to think that the State can avoid the debt burden, he says inaugurating the investors’ meet organised by the Department of Industries

Despite Kerala being host to at least 50 leading manufacturing units and the share of manufacturing in Kerala’s GDP going up from seven to 14%, there are some who paint a bleak picture and pretend that the State is not doing well, Chief Minister Pinarayi Vijayan has said.

There is also an attempt by some quarters to create an impression that Kerala is in deep debt. According to Reserve Bank data, Kerala’s public debt was 29% of its GDP in 2016. It has gone up to 37% in 2021. However, the Centre’s own public debt has risen from 47% to 59% during the same period.

Kerala is part of a country that is in debt and it is illogical to think that the State can avoid the debt burden, said Mr. Vijayan inaugurating the investors’ meet organised by the Department of Industries here on Saturday.

He said several States did not have Kerala’s health and education infrastructure or universal welfare measures. There were eight States that had public debt higher than Kerala and the rising debt level was a reflection of the economic policies followed by the country. If these policies were corrected, the debt levels could be reduced, Mr. Vijayan added.

He said there was an attempt to create an impression that Kerala’s income was from the Central government whereas 64% of its income was its own revenue. The impression was being created by those who were against Kerala. The success of the Year of Enterprises campaign during 2022-23 was a big step towards defeating the forces that were against Kerala, the Chief Minister said.

Kerala’s industrial and business atmosphere had gained from the success of the Year of Enterprises and called for setting aside differences to help the State develop. The State’s aim was to renew its industry and agriculture for future growth.

Thrissur stood first among the districts in terms of new enterprises while Ernakulam and Thiruvananthapuram were in the following two spots. It should be possible to strengthen the State’s growth.