State should learn from Lankan crisis: Balagopal

‘Food scarcity in Lanka is the outcome of neglecting agriculture’

In planning ahead, Kerala has lessons to learn from the ongoing economic crisis in Sri Lanka, a nation which has many geographical and cultural similarities with the south Indian State, Finance Minister K. N. Balagopal has said.

Mr. Balagopal was speaking on 'Budgeting with a long-term perspective' at a one-day seminar on the Economic Review 2021 and Kerala Budget 2022-23 organised by the Gulati Institute of Finance and Taxation (GIFT), Confederation of Indian Industry, University of Kerala and Cochin University of Science and Technology.

The Lankan crisis pointed to a need to have a system where the development of basic infrastructure was combined with growth in production in primary sectors such as agriculture and industry. The food scarcity in Sri Lanka may be the outcome of neglecting agriculture over a long period, Mr. Balagopal said.

''We can depend on other countries, but what we can produce and we need to produce,'' he said. Compared to the war in Ukraine, the Sri Lankan crisis had received surprisingly scant attention in Kerala, he said.

Underscoring the need for long-term perspectives in planning, he said that the Kerala Budget had sought to do just that. Mr. Balagopal dwelt on the need to finetune tax collection and plug leaks in taxation. He reiterated the State's demand for the Goods and Services Tax (GST) compensation to be extended beyond June 2022.

Planning Board vice chairman V.K. Ramachandran, who inaugurated the seminar, said the State could claim solid achievements despite unforeseen crises during the 13th Five Year Plan period which was now coming to an end. Kerala made big strides in areas such as housing, heavy infrastructure, upgrading of school education and bringing relief to the people.

At the same time, the State did not relinquish its emphasis on inclusiveness and human development indicators. Economic growth was subdued in 2020-21 due to COVID-19, but measures launched by the State government helped in moderating its impact on the people, Mr. Ramachandran said.