‘Plan B’ is part of a novel strategy for growth: Kerala Finance Minister KN Balagopal
Kerala’s response to the ‘financial discrimination’ of the central government is no longer confined to criticisms or demonstrations. The 2024-25 budget presented by KN Balagopal hints at the future course of action, if the Centre does not change its stance. In a freewheeling chat with MS Vidyanandan, the finance minister talks about what’s in store
The budget talks of ‘Plan B’ if the Centre continues its ‘neglect’ of Kerala. Can you explain?
I stated the discrimination over the sharing of resources from the central pool. The proposed Plan B is not a political move but an economic strategy to overcome the financial crisis. The idea is to explore the potential of private investments for development and economic growth. There were some important announcements related to private investments in the budget. Kerala will be forced to adopt Plan B if the central government remains adamant.
Are you certain that Plan B will work?
We have no other option but to adopt novel strategies. If the Union government continues on its stand, the potential of private investment will have to be explored further. We have to ensure that development programmes are carried on at current pace.
What is your favourite announcement in the budget?
The proposals to attract private investment are my favourite. We announced plans to attract investments in sectors like tourism and IT. It took much effort - brainstorming and deliberations - to formulate them. Roping in the support of NRIs for development programmes is another important announcement. Another is the opening up of the education sector to foreign students. The proposals to explore the potential of AI and robotics is an investment in the future.
A separate environment budget was part of this year’s budget? What prompted this move?
This is a continuation of an important announcement in my first budget - to make Kerala carbon-neutral by 2050. Budget plays a big role in taking certain messages to the public, especially stakeholders. The environment budget reveals our commitment to environment-friendly development.