Kerala Finance Minister K M Mani has the rare distinction of having presented eight budgets in the state assembly. His ninth budget, scheduled on July 8, will spell out the newly elected government’s financial priorities for the state. In an interview with Joe C Mathew and Shaikh Zoaib Saleem, Mani rubbishes the claims of the previous Left front government that state finances are intact and says his government will take a pro-active role in the central government’s Goods and Services Tax (GST) roll out plans. Excerpts:
As a member of the Empowered Committee of State ministers on GST, how do you see the progress of GST implementation? Will there be a shift in your stance as compared to the previous government?
We will play a pro-active role. As far as GST is concerned, the previous government did not have any stand at all. We are clear about the compensation that we need for any revenue loss and will support GST implementation.
Any hints about the next chairman of the Committee, since Asim Dasgupta, who was heading it, lost the West Bengal elections? When is the next meeting of the Committee scheduled?
We are yet to hear about it. At the moment, we have no suggestions on who should head the Empowered Committee.
What is the status of state finances that you have inherited?
It is not stable. We are in (financial) trouble. I will present a White Paper on the State’s financial situation on July 8 (budget day). You will have to wait till then for a clear picture.
Former Finance Minister Thomas Isaac claims that Kerala’s financial position is stable and there is a treasury balance of Rs 2,000 crore. Do you agree?
It is not a big amount. We are yet to clear the salaries. The pension dues, considering the pay revision, will alone consume the treasury balance.
Have you sought Central assistance from Union Finance Minister Pranab Mukherjee?
Not yet. But we will certainly require Central funds. I will meet the Finance Minister soon after the Budget.
How do you see the populist budgetary announcements such as subsidised rice distribution made by the former government? Will they be rolled back?
This will be a modified budget. You will have to wait for my budget speech for details.