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Rs 1,520 crores spent, only 5,839 jobs generated: RTI reveals how Kerala govt generated precious few jobs in 8 years despite spending big

The information was made public in response to an RTI request filed by Kerala-based activist K Govindan Nampoothiry on 15th February.

A recent Right to Information (RTI) response revealed that the state government of Kerala has generated only 5,839 jobs over eight years, from 2016 to 2024, with an investment of Rs 1520.69 crores. A media report exposing the state was exclusively covered by India Today.

The report added that the state government’s reported investment of Rs 1,520.69 crore resulted in less than 6,000 new jobs in Kerala over the given timeframe. According to the RTI response, the Kerala State Industrial Development Corporation (KSIDC), a state-level organisation that promotes investments and firms, gave financial assistance to 119 enterprises in Kerala.

The information was made public in response to an RTI request filed by Kerala-based activist K Govindan Nampoothiry on 15th February.

Nampoothiry underlined the dramatic disparity, adding that the Directorate of Industries and Commerce in Kerala claimed to have created over 5 lakh jobs in the last 22 months through its ‘Year of Enterprises’ plan. They reported the establishment of 2,36,384 firms over this period, with an investment of Rs 14,922 crore. 

Nampoothiry voiced alarm about the considerable difference between the Kerala government’s investment and job creation, implying a short-sighted strategy by the current administration. He also emphasised the importance of immediate involvement to improve the advantages of state initiatives, calling for a thorough evaluation and adjustment of strategies targeted at increasing investment and entrepreneurship in the state.

The activist argued that the significant disparity in job creation and investment figures raises serious concerns about the effectiveness and productivity of the government’s assistance schemes, and he called for an evaluation to ensure that the state lives up to its claims of making Kerala an attractive investment destination.

This comes days after reports emerged revealing that the state failed to pay salaries to its employees due to an acute financial crisis. As per the reports, not even half of the government employees had received their salary by 6th March. Kerala Pradesh Congress Committee (KPCC) president K. Sudhakaran criticised the state CM for financial mismanagement and said that the Ministers had drawn the salaries on time however, salaries of other state employees were delayed. “Social security pensions had also not been disbursed for the past six months,” he was quoted as saying.

He said that the delays impacted around 50 lakh individuals, including employees, retirees, and their relatives. Delays in salary and pension payments would reduce consumption, causing a market crisis. It would also exacerbate the hardship of the common people during a period of substantial price increases in the state. The government also neglected to pay the employees’ DA and salary revision arrears.

According to the reports, salaries are now being paid using the Reserve Bank of India’s (RBI) ‘Ways and Means Advance’. The RBI provides this advance as a loan when the state treasury lacks sufficient finances. Its cap is at Rs 1670 crore. Another Rs 1670 crore could be used as an overdraft. However, these funds must be returned to the RBI within 14 days, otherwise the treasury will be put on hold.

The state treasury went empty on 1st March due to the Kerala Government’s payback of Rs 2736 crore, which was received from the Central Government as the overdraft term expired, and another Rs 1386 crore allocated as IGST settlement, to the RBI. 

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Searched termsKerala model
OpIndia Staff
OpIndia Staff
Staff reporter at OpIndia

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