THIRUVANANTHAPURAM: Terming the Union budget a disappointment, Kerala Finance Minister K N Balagopal said none of the state’s long-pending demands were met. The budget upheld the interest of foreign countries and would adversely affect the economic trajectory of the country, he said.
Balagopal termed the tax structure as supportive of foreign capital forces and opined that the budget was indicative of the economic slowdown.
He said the budget had nothing substantial to salvage the economy that has been in a bad shape and that it lacked ideas to tackle the tariff war imposed by US President Donald Trump.
The minister added that the Centre has been denying the state its share in projects, including Jal Jeevan Mission.
In the last budget, Rs 67,000 crore was allotted to Kerala, out of which only Rs 16,000 crore was spent, he said. Subsidies for fertilisers, food, and petroleum have been reduced. For the rural employment guarantee scheme, the allocation has come down from Rs 88,000 crore to Rs 30,000 crore. Kerala has been denied AIIMS again. The Vizhinjam harbour project was also overlooked. The much-needed industrial corridor was not mentioned and neither was the high-speed rail allotted, Balagopal pointed out.
He added that the Union budget was incapable of generating economic growth and that there was no mention of the Rs 21,000-crore special fiscal correction package the state had asked for.
The state had sought the setting up of a defence corridor, but it has been granted a rare earth corridor. The Finance Commission’s share has been reduced further, but the tax share has been raised from 1.92% to 2.38%, he added.