Foreign visits essential, Kerala not that impoverished: KN Balagopal defends CM

Kozhikode: Amid widespread criticism of financial mismanagement, Kerala Finance Minister KN Balagopal on Tuesday justified Chief Minister Pinarayi Vijayan's Europe visit scheduled for October.

"Visiting foreign countries is important to gain knowledge. Kerala is not that impoverished. The CM's foreign visit will not impact the state's overall expenditure," Balagopal said.

"Kerala has a domestic revenue of Rs10 lakh crore," the Finance Minister added.

“The budget has allocated Rs 2 crore for taking famers abroad and acquainting them with the foreign agricultural practices. A recent report said Kerala has more (Mercedes) Benz cars than Oman. This (ministers' foreign travel) is not something we should be discussing," he said.

"The real issue we should delve on is the Centre's GST compensation to the state. Kerala will not slip into overdraft. The situation is under control," he said.

Reports that Planning Board in Kerala will be wound up and replaced by Niti Aayog, also invited criticism from the FM. Balagopal on Tuesday said the State Planning Board has been a tested organisation and doing yeoman services.

Chief Minister Pinarayi Vijayan, Education Minister V Sivankutty and a group of officials are slated to visit Europe in the first week of October. Finland has invited a delegation from Kerala to visit the country to initiate a collaboration in the field of education. The team may also visit the Nokia factory in Finland, and Norway during the trip.

CPM State Secretary MV Govindan also defended the forthcoming European visit.

"Ministers' foreign trips cannot be avoided. It is essential for progress in the social and administrative fields. Foreign visits are not the reason for the state's economy ills," he said.

On an average, Kerala's monthly expenditure, plan and non-plan expenditures together, is pegged at Rs 14,500 crore. However, the state's expenditure crossed Rs 15,000 crore in the first week of September itself due to the additional Onam expenditure.

Finance Department officials say that compared to last fiscal, the additional expenditure necessitated by Onam crossed Rs 6,500 crore.

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