THIRUVANANTHAPURAM: UDF led Kerala Chief Minister Oommen Chandy is going to face a host of political and administrative problems during this post-Onam period.

One of the biggest problem that his government is facing is the financial crunch, which is all set to develop into a full-blown crisis as a result of a steep fall in revenues owing to the changes in the liquor policy.

Mr. Chandy and Finance Minister K.M. Mani have stated the government would tide over the crunch created by a heavy outflow of payments during the Onam season.

The major impact of the fund crunch will be the 676 Mission of the government, formulated by Mr. Chandy to give a new direction to his rule in the remaining two years of his term.

It has almost become certain that the State would witness a sizable cut in the Annual Plan.

The Finance Minister has already gone in for compressing spending to avoid mounting a huge revenue deficit. With inflation yet to be bridled, additional subsidy amounts will have to be provided to keep the prices of essential commodities down. Tourism industry, a major player in employment generation, will be severely hit. The construction industry which had been a major source for employment and income generation will also be seriously affected.