When reviewing the Kerala budget, it is essential to have an exact idea of the economic background when the budget was prepared.
This fiscal year Dr Isaac had to deal with the continuation of a major economic crisis. The crisis that agricultural and allied sector has been experiencing for the last 7-8 years hasn’t improved, the price drop for commercial crop has lead to a major disaster in the agricultural sector of the state which is very much depended on commercial crops. Suicides have become a common headline in agricultural districts such as Wayanad, Palakad, and Allapuza. The manufacturing sector is also heading towards a major disaster due to lack of efficiency, high import, and lack of fresh investments. This crisis obviously has its influence on the economic condition and the employment generation capacity of the state.
But the Economic review indicated that the states economy had grown at an average of 8% during the 10th plan period. However this hike is very much depended on the astonishing growth that the state is witnessing in the service sector for the last few years, thus mimicking the national growth.