UNION BUDGET '24

Economic Survey fails to reflect India's reality, says FM Balagopal

Thiruvananthapuram: Kerala Finance Minister K N Balagopal on Monday said that the Economic Survey report presented by the central government in Parliament does not accurately reflect India's current economic reality. He pointed out that the country's poverty, unemployment, inflation, and production slump are not adequately addressed in the report.

"Despite various estimates in June indicating a 9.36 per cent increase in food prices in India, the central government claims there is no inflation," Balagopal said in a statement. Noting that India ranks 111th among 125 countries in the poverty index, Balagopal said according to a Harvard University study, India is a country where 67 lakh children do not get to eat even once a day.
"Yet, all that is being done is to pretend that a big economic growth has been achieved," he said.

Balagopal criticised the report's growth projection of 6.5 to 7 per cent for the current financial year, stating that this claim has been made despite global economic growth being stagnant at 3.2 per cent. He also questioned the claim of achieving an 8.2 per cent growth rate last year, citing a lack of supporting evidence.

The minister highlighted the increasing debt burden on the country, which has risen from Rs 45.17 lakh crore in 2011-12 to Rs 183.67 lakh crore. He noted that Kerala's debt is only 33.09 per cent of the domestic product, contrary to claims that the state is in a debt trap.

Balagopal also pointed out that the central government's revenue deficit for 2023-24 is Rs 8.4 lakh crore, which is 2.8 per cent of the Gross Domestic Product (GDP). "In contrast, Kerala's revenue deficit is 1.48 per cent. Kerala is effectively implementing fiscal consolidation measures mandated by the Fiscal Responsibility Act," he said.

Regarding inflation, Balagopal disputed the report's claim of a 5.4 per cent inflation rate, citing varying inflation rates across states, namely 7.2 per cent in Odisha and 6.4 per cent in Bihar. In Kerala, the inflation rate is 5.83 per cent, and he argued that ordinary people are struggling with high prices despite claims of low inflation.

The minister expressed scepticism about the central government's declaration to rationalise public expenditure, given its reduction of fertiliser subsidies by 22.4 per cent and food subsidies by 24 per cent. He emphasised the need to assess the impact of new policies on the agricultural sector, which according to him, is already struggling.

Earlier, Balagopal noted that if the growth rate recorded by the Economic Survey is accurate, it should be reflected across the country. He highlighted the importance of revenue growth in the states and the need for the manufacturing sector to drive economic growth. Thomas Isaac, former finance minister of Kerala, concurred that the Economic Survey presents a rosy picture of the Indian economy but fails to address the pressing issue of unemployment. 
(With PTI inputs)