State has registered GDP growth rate of 6.98 per cent

Thiruvananthapuram: Despite fears of the global recession having an adverse impact on Kerala’s economy, the state has registered GDP growth rate of 6.98 per cent,slightly higher than national growth rate of 6.7 per cent, according to the state’s economic review.

Though there was an apprehension that Kerala’s growth rate would be low in 2009-10 due to world economic crisis, “things certainly have not been as bad as feared at one stage’, the Economic Review-2009, tabled in the assembly Thursday, said.Continuation of ‘capitalist’ crisis and signing of Free Trade Agreement with ASEAN countries by the Centre are the two specific features that would have a bearing on the Kerala economy during 2010-11, the review pointed out.

With inflationary recession to affect the world economy and India in particular in the coming months, the review predicts a bleak employment prospect, subdued prices for cash crops and escalating prices for foodgrains in the state. Referring to the fiscal position of the state, the review said Kerala was on the path of fiscal consolidation since 2004-05 and fiscal position has witnessed significant improvement in the recent years.Total revenue receipts are estimated to increase by Rs 3641.72 crore in 2009-10 as against Rs.3405.39 crore last year.Total revenue estimated for the current year is Rs 28,154 crore.

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