Kerala having financial crisis. But i don't think so. it gives an idea about the fiscal challenges that have to face Kerala.

1. FISCAL CRISIS IN
KERALA
PRESENTED BY
GEORGI MATHEW VARUGHESE
3RD BA ECONOMICS
Bishop Abraham Memorial College
AN INTRODUCTION TO KERALA’S FISCAL CRISIS
Thuruthicad

2. Thanks To …….
ALL THE THEACHERS IN DEPARTMENT OF
ECONOMICS B.A.M COLLEGE,
THURUTHUCADU.
MY FRIENDS IN 3RD BA ECONOMICS B.A.M
COLLEGE……..

3. AN INTRODUCTION TO FISCAL CRISIS
IN KERALA
1. What is fiscal deficit?
2. A walk to fiscal crisis
3. Is Kerala in a fiscal crisis?
4. What can we do to overcome this crisis ?

4. What is fiscal deficit?
• Annual borrowing of the government
• Government expenditure is greater than the
total revenue
Fiscal deficit is an economic phenomenon, where the Government's total
expenditure surpasses the revenue generated . It is the difference between the
government's total receipts (excluding borrowing) and total expenditure. Fiscal
deficit gives the signal to the government about the total borrowing
requirements from all sources.

5. A walk to fiscal crisis
• Budgetary deficit since 1970’s
• It was peek in 2006 – 2007
• More welfare activities needs more money
• Repaying interests – liabilities

6. Is Kerala in a fiscal crisis?
• Revenue deficit during last 5 years
• Fiscal deficit is increasing every year

7. Trend in Deficit Indicators
14000.00
12000.00
10000.00
8000.00
6000.00
4000.00
2000.00
0.00
Revenue Deficit Fiscal Deficit

8. 16000
14000
12000
10000
8000
6000
4000
2000
0
FISCAL DEFICIT IN KERALA
2011 – 2012 2012 - 2013
Revenue deficit Fiscal deficit Primary deficit

9. Is Kerala in a fiscal crisis?
• Revenue deficit during last 5 years is not
decling
• Fiscal deficit is increasing every year
• Kerala is in fiscal deficit and on the path to a
crisis

10. Projected fiscal deficit of Kerala by Kerala
public expenditure review committee

11. What can we do to overcome this crisis?
• Efficient management of government
expenditures
– Avoid mismanagement
• Government should not promote
disinvestment

12. THANK YOU.