THIRUVANANTHAPURAM: Finance Minister K N Balagopal is confident that people will understand the circumstances that forced his government’s hand to announce unprecedented revenue-mobilisation efforts. Speaking to TNIE, he exudes confidence that the budget proposals will help generate more growth.
UDF has announced a protest against the hike in fees and taxes. Will this be a political setback for the LDF?
People know we were forced to take this hard decision in the wake of the unprecedented cuts in Central funds. Opposition was prepared with placards before the budget speech began. Their sole aim was to oppose any announcement in the budget. People will not fall for their machinations.
Why did the government not announce austerity measures?
Who said we didn’t? There are several curbs already in place. This budget too covers that aspect. We cannot reduce social-security spending just because of the financial crisis.
What is your favourite announcement?
Development programmes announced for Vizhinjam Port have my vote. This one project has the potential to transform the state. I have earmarked Rs 1,000 crore through KIIFB for land acquisition for constructing the industrial corridor.
The budget has earmarked Rs 2,000 crore for market-intervention programmes. Won’t the proposed cess on petrol and diesel escalate the price of essential commodities?
The cess aims to mobilise Rs 750 crore. It aims to fund social security pension payment. It will not result in inflation
Do you expect the budget to help revive the economy?
The major aim is to rejuvenate the economy
The additional resource-mobilisation efforts will not match the cut in central funds. How will you make up for the shortage?
Yes, the hike in fees and taxes will not make up for the shortfall. We are continuing with our
efforts to convince the central government of the crisis faced by the state. We are hopeful.