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Sagging economy: Kerala ministers proposed foreign jaunts kick up a row
Kerala finance ministry statistics show that Onam kits, with 14 food items, distributed to 87 lakh card holders, cost the exchequer ₹425 crore.
A proposed visit by Kerala chief minister Pinarayi Vijayan and three ministers to Europe next month has ignited a huge political row in the state, with the opposition Congress and the Bharatiya Janata Party (BJP) asking the government to stop lecturing the on fiscal prudence and practise what it preaches.
Pinarayi Vijayan and education minister V Sivankutty are slated to visit Europe in the first week of October along with a group of officials. They are slated to travel to Finland, Norway and other Nordic countries to explore cooperation in education and cultural sectors.
Tourism minister Mohammad Riyas is expected to travel to France and other countries to explore tourism potential next month. Industry minister P Rajeev is scheduled to travel to Britain in November to attract investment to the state.
Kerala finance minister KN Balagopal, however, justified the visits, saying they will immensely benefit the state and cannot be postponed due to the state’s financial condition.
“These visits are important to gain knowledge and mutual co-operation and help. They will not impact the overall expenditure of the state. The situation is not that bad as portrayed by a section,” said Balagopal.
CPI(M) state secretary MV Govindan also justified the Europe visit of ministers. “Foreign visits are part of governance, we can learn a lot from other countries and explore mutual cooperation,” he said, accusing the opposition of raising a non-issue.
Large-scale spending during the just-concluded Onam festival season and the Union government’s cap on borrowing limit at ₹17,936 crore for the nine-month period from April to December aggravated the financial situation of the state.
It also faced a reduction of ₹3,578 crore in its borrowing limit due to Centre’s plan to view Kerala Infrastructure Development Investment Fund Board (KIIFB) and Kerala social security pension limited borrowings as part of the state’s debt. The Centre has rejected its repeated pleas to not consider the two under the state’s borrowing limit.
According to the finance department, the state’s monthly expenditure is pegged at ₹14,500 crore, but it crossed ₹15,000 crore in the first week of September. Besides, the state road transport corporation was given ₹300 crore to pay the pending salary of employees after the rap from the high court. Onam kits, with 14 food items, distributed to 87 lakh card holders, cost the exchequer ₹425 crore, finance ministry statistics show.
“Persistent use of borrowed funds to meet revenue deficit, excessive increase in salary and pension, freebies and cut in annual borrowing limit by the central government led to such a situation,” said economist BA Prakash, adding it is high time for the state to stop extravagance and not to use borrowed money to meet routine revenue expenditure.
The Congress and BJP have criticised the proposed visit of ministers. “The state’s financial position is precarious and it is exploring all avenues to borrow. Now ministers are in queue to visit foreign countries,” said state Congress president K Sudhakaran.
“These ministers are saying they are going to learn a lot from foreign countries. They often flaunt the Kerala-model and ask others to emulate it. What happened now? It is ridiculous,” BJP leader S Suresh said, adding outcome of previous visits should also be taken into account.
