Thiruvananthapuram, 19 June (H.S.): Chief Minister V.D. Satheesan on Friday strongly defended the UDF government's maiden Budget against criticism from Leader of the Opposition Pinarayi Vijayan, asserting that encouraging private investment is a conscious policy choice aimed at reviving Kerala’s economy and creating jobs.

Responding to allegations that the Budget is designed primarily to attract private capital, Satheesan said the criticism was accurate in principle, arguing that private investment is essential for generating employment opportunities and stimulating economic growth.

“Yes, we want private investment to come to Kerala. Encouraging private investment is our policy. We intend to create jobs through private investments, strengthen the economy, generate wealth, and use that wealth to support the poor,” the Chief Minister told reporters.

He said the state’s financial situation leaves little room for large-scale public sector expansion. “The government does not even have five paise in hand. Yet some people want us to continue with the same old approach. We did not come to power for that. Before the election itself, we told the people what our approach would be,” Satheesan said.

The Chief Minister said the UDF government’s objective is to take Kerala forward rather than allow it to stagnate. Pointing to the state’s financial burden, he noted that Kerala faces immediate liabilities of around ₹87,000 crore and an overall debt burden exceeding ₹5 lakh crore.

“In such a situation, what major project can the government alone undertake in the public sector? Every state is competing to attract investment. Tamil Nadu, Karnataka and Maharashtra are doing so aggressively. Why should Kerala be different?” he asked.

Satheesan rejected allegations that the Budget promotes privatisation, challenging critics to identify a single proposal that hands over public sector institutions to private players.

“Have we privatised KSRTC? Have we privatised the Water Authority? Not a single public sector institution has been privatised,” he said.

The Chief Minister also accused Pinarayi Vijayan of adopting contradictory positions on private investment. He noted that the former Chief Minister had taken credit for bringing the Adani Group’s Vizhinjam International Seaport project to Kerala while now opposing private sector participation.

“Does the state have the resources to build and operate all these projects on its own? Does Kerala have the capacity to create the logistics infrastructure required from Vizhinjam to Kasaragod without private participation?” he asked.

According to Satheesan, the government plans to encourage private investment in logistics, maritime infrastructure and related sectors, creating competition and expanding economic opportunities. He said investments in barge logistics, vessel logistics, logistics parks and fisheries exports would generate large-scale employment and strengthen the state’s maritime economy.

“We will support investors in every possible way through government agencies. If we fail to attract investment, Kerala will fall behind. Therefore, we will fully encourage private investment,” he said.

The Chief Minister also highlighted the shrinking role of traditional public sector employment and questioned how many public enterprises in the state are currently capable of providing jobs to engineering graduates and other young professionals.

“After retirement, many positions are being filled on a contract basis. How many public sector institutions are there today that can offer meaningful employment to engineering graduates? Don’t our young people need jobs? This is precisely why many of them are leaving the state,” he said.

On the implementation of Budget proposals, Satheesan announced that the government would establish a robust monitoring mechanism to ensure projects are completed within stipulated timelines.

He said every Budget announcement would be subject to regular performance audits, with progress reviews conducted once every three months using modern monitoring systems.

“Project implementation is where the biggest leakages occur. A project that should be completed in two years at a cost of ₹100 crore often ends up taking ten years and costing ₹1,000 crore. We intend to stop such waste,” he said.

The Chief Minister said officials responsible for implementing projects would be held accountable under a structured project management protocol designed to ensure efficiency and timely execution.

“We will introduce a strong project implementation framework with clear accountability. The Budget contains projects that can be implemented, and we are committed to ensuring they are delivered,” Satheesan added.

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Hindusthan Samachar / Arun Lakshman