COVID-19 will impact Kerala economy, says Thomas Isaac

Thiruvananthapuram: Kerala Finance Minister Thomas Isaac on Wednesday said that the novel coronavirus disease (COVID-19) outbreak will have an adverse impact on state's economy if not contained soon.

The finance minister said the state feared a fall in tax collection as the virus outbreak impacted the traders badly. Its adverse effect on Gulf countries will also reflect on the state, he said.

Even the liquor sales have gone down in the state, Isaac said during an interview in Manorama News' morning program Pularvela.

Kerala Financial Corporation has already released Rs 150 crore for Medical Services Corporation to contain the outbreak, the minister said.

Last week, Isaac had told the Assembly that the COVID-19 outbreak, if not contained globally within three months, may lead to a worldwide economic crisis, the impact of which will be felt in the state as well.

"With the outbreak of the novel coronavirus disease the global economy is facing a threat... if its is not controlled within three months, " Isaac had said in Kerala Assembly on March 3.

He further stated that the tourism industry in the state has already been hit after COVID-19 cases were reported in the region.

"Tourists this season kept themselves away from travelling to the region due to coronavirus outbreak. Other countries like Iran have also been hit by coronavirus. Travel restrictions have already been imposed by Saudi Arabia. If Gulf countries are affected, it will have its impact on Kerala as our economy is largely dependent on NRI remittances," he said.

The minister claimed that the state government has been successful in containing the deadly virus compared to other countries.