Kerala Govt To See Rs 3,000cr Additional Expenditure Next Fiscal - July 11, 2008

The Kerala Government will incur extra expenditure to the tune of Rs 3,000 crore in next financial year due to price increased caused by the increase in prices of petroleum products. The Finance Minister, Dr Thomas Isaac, said that the Kerala State Road Transport Corporation (KSRTC) will have to bear an additional load of Rs 60 crore because of the increase in petroleum prices. Besides, the Government will need Rs 350 crore to pay one instalment of dearness allowance to the government employees. On the other hand, the State will lose revenue on account of reduction in the sales tax on petrol and diesel. The tax had also been decreased to five per cent for other petroleum products. The Government will soon declare measures to restrict wasteful expenditure after going via the measures taken during the last 15 years.