Budget likely on March 9: Mani

THIRUVANANTHAPURAM:  The economic recession and the fall in revenue receipts of the Centre  is bound to result in a proportionate cut in the annual allocation of funds to the state this year, thereby making the budget formulation of the state for the next fiscal an uphill task, Finance Minister K M Mani has said. It is also a matter of great concern for the state that the implementation of the Goods and Services Tax is getting delayed, which could put the state in a tight financial position.In a media briefing on the pre-budget consultations  held here on Tuesday, Mani said that the general assessment in the discussions was that the state can overcome the impact of the nationwide economic recession and drastic fall in growth in the primary sector only through a restructuring of the agricultural sector through judicious mechanisation and making the best use of biotechnology, genetic engineering and nanotechnology. Employment generation through innovative projects and avenues for skill development are other areas the state should lay focus on to move forward.  “Due importance will be given to agriculture,” he said, adding that measures to effectively utilise the remittances of NRKs will also be examined.“Projects to best utilise the NRK funds has to be formulated”, he said. Mani said that the state budget will be presented early next month, probably on March 9. It will be presented ahead of the Union Budget this time, he said. “The revenue deficit of the state in the ongoing fiscal is 1.3 per cent and the fiscal deficit stands at 3.5 per cent. The 13th Finance Commission had recommended to bring down the revenue deficit to 0.9 per cent in 2013-14 and to zero by 2014-15. If the Effective Revenue Deficit system, which is under active consideration of the Centre is implemented, the revenue deficit can be brought down. Curtailing wasteful expenditure and boosting income generation are very important,” Mani said. On how the state can bring down the revenue and fiscal deficit when funds exceeding even the budget outlay are sanctioned for various projects and also when the burden of salaries and pension is mounting, Mani said that there is nothing wrong in resorting to borrowed funds, provided they are utilised for productive purposes. Finance Principal Secretary V P Joy was also present at the news conference.