Kerala FM seeks Centre's support to formulate development projects

He said lack of economic growth in last few years has adversely affected revenues of both Central and State govt

Kerala Finance Minister K M Mani today sought the support and assistance of the Centre to carry forward development projects formulated by the state.

Mani, in a letter to Union Finance Minister Arun Jaitley, said that with his (Jaitley) vast professional experience and exposure to various sectors in the Union Government, he was sure that the FM would be able to evolve suitable policies for the overall economic growth of the country.

Stating that the nation's economy had been doing well in the last few years, he said lack of growth has adversely affected revenues of both Central and State Governments.

The Central Government had in fact made substantial reductions in Plan outlays, he pointed out.

The share of Central taxes to States had also come down significantly last year.

Mani said the global economic slowdown had its impact on India also, resulting in a fall in revenues, economic growth and employment generation.

Implementation of VAT in the previous decade had helped the state consolidate their fiscal position. But this trend was reversed in the last few years because of the fall in growth, he said.

"I would therefore request you to keep in view the urgent need to rejuvenate the economy', he said.