Fund crunch may turn annual plan topsy turvy

Implementation of Kerala's annual plan for 2006-07 is likely to hit the speed-breaker due to insufficient resources.

Expressing serious concern over the state's financial situation, newly-elected finance minister Thomas Isaac said there were not enough funds to implement even one-fourth of the annual plan.

"Though the previous government had painted a rosy picture of the state's financial strength, Kerala today is a debt-ridden state," Isaac said.

The former UDF government had lined up a Rs 6,450-crore annual plan eyeing more borrowings. Isaac ruled out possibilities of further borrowings in such a situation.

Stressing the need for rightsizing the plan outlay, Isaac ruled out any more Asian Development Bank(ADB)-aided projects in the state.

He said a document on the status of state finances would be brought out soon. The finance minister further said the government would invest in sick public sector units on the basis of case by case study.

He added that private participation would be considered in mega projects. He also said that Rs 900 crore would be mobilised additionally to fund wage revision.