Growth in union government revenue is not reflected in states: K N Balagopal

Thiruvananthapuram, Jul 22 (PTI) If the growth rate of the country is as recorded by the Economic Survey, then it should reflect across the country, in every state, Kerala Finance Minister K N Balagopal said on Monday.

Talking to PTI after the Economic Survey 2024 was tabled in Parliament by Union Finance Minister Nirmala Sitharaman, Balagopal said, "As per the preliminary overview (of the Economic Survey), the (high) growth rate is there. But the most important thing (to note) is that the revenue growth of the union government is not reflected in the states." He said India's manufacturing segment, a sector thought to drive the economic boom, is still hovering around 17 per cent.

"Even though for the last 10 years we have been saying 'Make in India', the sector has not grown like that. Countries like China, which are leaders in manufacturing, have been registering steady growth. India can also do that, but we need to promote Make in India to give a boom to the manufacturing sector," Balagopal said.

He said the Government of India should make some "serious interventions" to control inflation. He hoped there would be some measures announced in the Union Budget on Tuesday in this regard.

Former Finance Minister of Kerala Thomas Isaac said though the Economic Survey has painted a rosy picture of the Indian economy, the country is facing the worst unemployment and this is a major downside. Private consumption has stagnated due to unemployment and, due to this, private investments are not picking up, he explained.

"The challenge for the union government is to ensure decent (adequate) work in India. You have to increase domestic demand within the Budget. But unfortunately, the Economic Survey does not propose these important questions. That shows that the Budget is going to be business as usual," Isaac said. PTI KPK TGB ANE