Thiruvananthapuram: The State is experiencing economic slowdown due to demonetisation, according to Finance Minister Thomas Isaac.
To overcome the economic slowdown, huge loans should be taken through Kerala Infrastructure Investment Fund Board (KIIFB) to be invested in appropriate sector.
In his book Kallappana Vetta: Midhyayum Yadharthyavum, Thomas dwells on the further possibilities after the announcement of demonetisation.
Eminent writer M T Vasudevan Nair will release the book at the function to be held at Thunchan Parambu in Tirur on December 27.
The present year and next year will see economic stagnancy. The most important thing in the present scenario is to protect the state's co-operatives.
The co-operatives should acquire a more organised nature to deal with today's challenges. In this scenario, the formation of a huge Kerala Co-operative Bank by the joining of district co-operative banks and state co-operative banks assumes relevance.
The State government's revenue was expected to increase by 19.6 per cent in the present year. However, the revenue is going to grow below 10 per cent only, Isaac says in the book.
One cannot expect an increase of revenue of more than 15 per cent in the next year. Isaac says that the government expenditure is coming down in the present condition. This was unexpected. When the government expenditure in the 21 working days (October 8 to November 7) is compared with the he expenditure from the working days of November 8 to November 21, it can be ascertained that the expenditure has come down by Rs 1119 crore.