Kerala's financial position grim: CM

Thiruvananthapuram, May 24 (UNI) Calling Kerala's financial situation is grim, Chief Minister V S Achuthanandan today asked Finance Mnister Thomas Issac to present a detailed report on it to the Cabinet.

Briefing media after a Cabinet meeting, he said his government had decided to make public the present financial situation of the state.

On former Chief Minister Oommen Chandy's demand for a white paper on Kerala finance, Mr Achuthanandan said no decision had been taken to bring out a white paper, but the facts would be made public soon.

He rebutted former Finance Minister Vakkom Purushothaman's claim that the state had surplus funds when the United Democratic Front Government stepped down. 'It is not true. The financial position is very grim,' Mr Achutanandan said.

Though the State Government had sought the Centre's permission to borrow Rs 7246 crore from the market, the state got permission only for Rs 4672 crore due to its bad financial management, he said.

The Finance Minister yesterday stated that there were not enough funds to implement even one-fourth of the 2006-07 annual plan.

The Cabinet, which reviewed the drought situation, also decided to release a sum of Rs five crore in addition to the Rs 1.40 crore already announced for taking up steps to ensure supply of drinking water in drought-prone areas during the summer months.

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