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Kerala is not bankrupt; Becoming New Kerala – Thomas Isaac’s reply to Manorama

“The question everywhere is: Will we go bankrupt? CPI(M) Central Committee member TM Thomas Isaacs responded to a business article published online by Malayalam Manorana titled “….

Today’s Manorama Online article “The Nationwide Question: Will We Go Bankrupt!!”. Written by Kishore, Enterprise Correspondent. He is among the easiest and best monetary writers in Malayalam. However on this article he has used all his abilities for pure gossip.

“When I went to a country house in the countryside, there was also a discussion – if we go this way, will Kerala become like Sri Lanka..? Could it be that I don’t get my salary…” I would have been able to bear it if I had stopped saying this. Kishore is not satisfied with that. The government should be put in a crisis by scaring those who have deposited money in the treasury into withdrawing it. “Oh, all my pension money has been deposited in the treasury…I can’t withdraw it…” He writes about the Treasury Savings Bank, which has been operating without any restrictions for the past seven years. Not writing without knowing. Knowing and writing. This is the most flagrant gesture a newspaper can make to a financial institution.

Isn’t the problem in Sri Lanka one of foreign exchange crisis? How does Kerala, which is only one state in India, have a foreign exchange crisis? There is no point in asking him. They seem to have the privilege to knock anything out. Which state will go bankrupt first? How is that? If the state goes bankrupt, the center is in a crisis many times over. Here is the link to my last day’s post regarding this. Those who are interested can read.

As long as the fiscal responsibility law is in place, no state can borrow more than 3 percent of GDP. No state will be in debt. Then the argument is that the loan taken through Kifbi is not included in the above calculation, and it will not put us in debt. no Kifbi’s liabilities can never exceed the company’s assets. It is possible to calculate very precisely how much liability will arise each year in the future. Kifbi has two types of liability. One is to pay the contractor’s bills. Second, the interest on the loan or the principal and interest must be repaid. This will accurately calculate and graph the cost each year for the next 15-20 years. Along with this another graph will be prepared. How much will Kifby’s income or assets be each year?

There are two types of assets. One is the annuity provided by the government. Two, repayments from income-generating projects. The principle is that the graph of assets should always be higher than the graph of liabilities. Take up projects ensuring this. Therefore, under no circumstances will the liabilities of Kifbi fall on the government. All the government has to do is provide the annuity as per the law. The government will not have any additional liability. In this way, roads, bridges, industrial parks and Transgrid, which are being built in Kerala by taking loans through KIFB, will harm Kerala’s industrial tax. Keeping all this in mind, Kishore’s prediction is this – “Wages will fall, borrowing will come down. It will not matter after blaming many others. Kerala may become the first state to go bankrupt in India. There are those who say. “People who do not have the {qualifications} or monetary standing to exit are staying right here….If this development goes away, after ten years, Kerala will likely be a land of people that do not know soil or bread.”

How may even these from regular households in Kerala be capable to exit and work? It’s as a result of they’ve been in a position to present training and well being to the frequent individuals in Kerala for a lot of generations. This isn’t Kerala. A small piece of pores and skin will not be sufficient to argue that the situation of the individuals of North Indian states is best.
Taking loans and creating infrastructure by way of Kifbi and others is a component of a bigger plan to create employment for the frequent individuals of Kerala by bettering all of the welfare, well being and training good points achieved up to now. This step won’t bankrupt Kerala, however will rework it into a brand new Kerala that may guarantee prosperity and financial development.

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