Thiruvananthapuram: Government would have to withdraw not only from development activities but also from social welfare schemes if the state failed to register economic growth, Chief Minister Oommen Chandy on Sunday said.
Chandy was speaking at the inauguration of the Centre for Budget Studies, named after state Finance Minister KM Mani, set up by Cochin University for Science and Technology, by Vice-President M Hamid Ansari, here.
Unless the state makes rapid economic growth, "government will be forced to withdraw from development activities and also from welfare programmes in near future," Chandy said.
On economic situation in the state, Chandy said the main problem was shortage of resources for capital investment.
Capital investment in 2011 was Rs 4,929 crore while in 2012 it was Rs 6,534 crore. Government finds itself with little left after paying salaries, pension of employees and interest on loans taken, he said.
The total revenue income of the state was Rs 2,790 crore in 1957-58 and after 55 years, it increased to Rs 48,120 crore.
Capital investment in that period was Rs 852 crore, Chandy said, adding, "It clearly showed that though revenue income of the state increased by 17 per cent, the capital investment rose only by 7.50 per cent."