The Congress-led UDF government in Kerala on Friday reaffirmed its resolve to go in for an Asian Development Bank loan to the tune of $600 to $1200 million and bring in a fiscal accountability Bill that is understood as an essential part of the "structural reforms" advocated by the multilateral funding agencies. Presenting the budget for 2002-03 in Thiruvanthapuram, the Kerala's Finance Minister K Sanakaranarayanan said the ADB loan was expected to bring in substantial investments in the power sector and public enterprises, besides helping the process of fiscal reforms.
"Considering the magnitude of financial assistance and other advantages of the package, it will be very much in our interest to carry out the reforms required and avail of the assistance", he said. Noting that Kerala had been identified as the third focal state for assistance by the ADB, he said the bank had already earmarked 600 million dollars, and had expressed its intention to double the quantum.
The process for availing of the loan was started by the previous LDF government, he said, adding it was a concessional form of assistance, carrying only seven per cent interest.
The ADB package would help the state streamline the administration, ensuring accountability and transparency and reducing or eliminating deficits and subsidies.
The LDF opposition, which has, of late, been charging the government with "towing the ADB line", held aloft banners reading 'for whom is the ADB budget' as the finance minister started presenting the budget in the Assembly. Bureau Report