Kottayam: The state government had to increase the taxes due to the lack of central allotment of funds, Finance Minister K.M. Mani said here on Monday. The state didn’t get almost Rs 2,200 crore of central allotment in the last two years, he told reporters.
The government would review the increase in the water tax if it hurt the common man, he added.
“We have received only Rs 700 crore from the Rs8,600 crore central allotment. We faced a shortfall of Rs1, 200 crore in 2013-14. We fear that we will not get Rs 1,100 crore of central funds this year too,” Mr Mani added.
“The present difficulty is to make up this shortage. Right now there is no financial crisis but only difficulty,” he added. The government did not plan to curb the developmental activities due to the problem, he added.
The global financial crisis had affected the state also. This had nothing to do with the liquor policy of the government, Mr Mani said.
Earlier, inaugurating a march conducted by the Kerala Congress (M) in protest against the falling rubber prices here, Mr Mani asked the centre to immediately stop the import of rubber. Thousands of party workers participated in the march.
Party deputy chairman C.F. Thomas later inaugurated a dharna held in front of the Rubber Board office.
