Govt is all set to retool the budget

Thiruvananthapuram:  The government is considering ways to revamp the economy on crutches following the lockdown.  

The steps could include prioritising projects, and discussion to this end is underway at chief ministerial level, drawing inputs from financial department.

The plans up the government’s sleeve also include appealing RBI to buy the state’s bonds.

The planning board, after taking stock of the situation, views that without prioritising projects the state can’t go ahead.

Retooling the budget will entail cabinet discussion and look into if the move will require concurrence of assembly that passed the budge.   

The government is also studying the impact of the global recession following COVID-19 situation.  The planning board is compiling losses in various fields and the report will soon be tabled before CM.

It is mulling over ways to kick start areas battered by the Lockdown. However, the centre has not responded to the state’s appeal to raise its credit limit.

The state will ask the Centre to allow encashing its assets.  Doctor K N Harilal. Planning Board member, stressed, while talking to Madhyamam, how important the move is for the state.  

It means RBI directly buys up the state’s bonds converting into money—also, RBI can either give it the Centre or the state.

The globalisation’s theme of market will take care of economy is not feasible, he said.  The centre must consider the state’s appeal to raise the credit limit. Its slim possibility makes the board to seek alternatives.

In order to enliven market, people should have money in their hands, say economists. Only through buying production can pick up.