Current Affairs Exam

Kerala needs a new model of public finance

The finance minister in thePinarayi Vijayangovernment 2.0 needs to chart a newKeralamodel of PUBLIC FINANCE that will not burden the future generation, eminent economist Prof K PKannanhas said.

The minister can find solace in the fact that the flow of has been continuing, a good part of which end up as Savings in banks, Kannan said, adding that he should find ways and means to tap these deposits through innovative ways by offering competitive interest rates and convert them into investments in productive Infrastructure.

Kerala has been facing serious challenges on the Migration front, including dwindling prospects of migration. In his opinion, skilling and raising the quality of Education are important prerequisites to tap the emerging potentials in overseas job markets.

The new Decentralization known asPanchayat Rajis now a half-built house. It calls for a complete faith in the principle of decentralized Governance as well as development, which I doubt, is still lacking among powerful sections in almost all Political Parties. But the Society, in general, has found it of value, especially in times of social crises.

The centralizing tendencies—for example by way of creating ‘missions’ for tasks that are legitimately meant for the Panchayat Rajare not a good omen. Deepening decentralization calls for a hand-holding approach by the government towards the local (not yet self) government. This is an agenda in which we need a political consensus across parties; I think we already have a social consensus, Kannan said.

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