Research seminar by Prof. Jose Sebastian

Posted on January 13, 2025 by administrator

IIM K hosted its Second research seminar on May 30, 2024, for the year 2024-25. It was conducted by Prof. Jose Sebastian, Former faculty at Gulati Institute of Finance and Taxation (GIFT), Thiruvananthapuram.

The topic was Overcoming the Fiscal and Development Crisis of Kerala: Pension Reform as a Policy Option.

Abstract of the talk given below

Written in the back drop of the acute fiscal stress and sluggishness that Kerala is undergoing, this paper enquires into the possibility of overcoming these by restructuring the expenditure side of state finances. It is argued that in the face of restrictions imposed by the Centre on borrowing and constraints in mobilising own resources, this is the only   option.  The paper questions the very foundation of statutory pension which accounts for 23.06% of total revenue in 2021-22. This is essentially a colonial legacy and therefore is outdated in the changed circumstances. It is one of the factors contributing to the growing inequality between communities and regions in Kerala.  By changing over to a need based universal pension, it is possible to release enough public resources to pull out the sluggishness griped economy. Simultaneously, the state can introduce the necessary legal framework for a universal pension system modelled on western developed countries. This is expected to lead to a virtuous cycle of economic growth and revenue increase which in turn will help the government to pursue policies targeted to reduce inequality in Kerala society.