The Government of Kerala has had to face a series of difficult events over the period of the Thirteenth Five-Year Plan. There were extreme weather events: cyclone Ockhi in 2017, and extreme rainfall events followed by floods and mudslides in 2018 and 2019. The State also had to face Nipah in 2018. In addition to the natural crises, adverse policy measures by Central Government such as demonetisation and introduction of Goods and Services tax affected the State economy, especially the financial resources at the disposal of the State for undertaking developmental activities.
Kerala's growth rate in 2019-20 is lower than the rate in 2018-19. The lagged effects of 2018 and 2019 floods, recessionary national and international economy, onset of Covid-19 pandemic towards the end of last quarter of 2019-20 are the reasons for the slow growth. In fact, recessionary economic conditions at the national and international level were visible from 2019 onwards. This has been further aggravated by the Covid-19 pandemic. Though some signs of recovery are slowly discernable, State Governments have to face specific difficulties to recovery.
Despite the low growth in 2019-20 and financial constraints, Kerala has made significant advancements in promoting growth of productive forces in the economy. The Government of Kerala has reinforced its thrust to support innovation, strengthen information technology and continued its commitment towards social welfare and protection and gender equality. Infrastructure development has received a push and in the coming years several projects will be completed. The Four Missions have ensured that the basic priorities of a quality life are assured to all.
Decentralised planning, which is now into its 25th year, has helped make development an inclusive and participatory process. Local Governments have become important institutions of realising the power of public action in practice.
Source : Economic Review 2020
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