THIRUVANANTHAPURAM: In the annals of Kerala’s political and legislative history, few episodes are as memorable or as witty as the “Surplus vs. Deficit” budget row of the mid-1980s. This historic clash involving the legendary Finance Minister K.M. Mani, Central Minister Janardhan Poojary, and the veteran “Chanakya” of Kerala politics, K. Karunakaran, remains a classic example of political maneuvering.
The Bone of Contention: Surplus or Deficit?
The controversy erupted during the presentation of the 1986-87 State Budget. K.M. Mani, known for his unparalleled expertise in finance and holding the record for the most budget presentations in the Kerala Assembly, declared his budget to be a “Surplus Budget.” Mani’s calculations factored in expected central allocations and state revenues to project a positive balance.
However, this claim was immediately challenged from New Delhi. Janardhan Poojary, the then Union Minister of State for Finance, publically countered Mani’s assertion. Citing central accounting standards and actual fund flows, Poojary insisted in Parliament that Kerala’s budget was, in fact, a “Deficit Budget.”
The disagreement between the state and central finance heads sparked a massive media frenzy, with political analysts and economists debating who held the “true” figures.
Karunakaran’s Masterstroke
As the tension between Mani and Poojary escalated, all eyes turned to Chief Minister K. Karunakaran. During a visit to Delhi, Karunakaran was intercepted by a swarm of reporters at the airport, all seeking a definitive answer: “Is the Kerala budget surplus or deficit?”
Caught between his own Finance Minister (Mani) and a key Union Minister from his own party (Poojary), Karunakaran delivered a response that has since become legendary. With his characteristic mischievous smile and a wink, Karunakaran replied:
“It is not that much of a surplus… but then, it isn’t that much of a deficit either!”
The clever ambiguity of the statement effectively defused the situation. By refusing to take a side, Karunakaran protected Mani’s prestige while avoiding a direct confrontation with the Central leadership, proving once again why he was considered the ultimate strategist.
A Lasting Legacy
Decades later, as Kerala continues to navigate complex fiscal relations with the Centre, this incident serves as a reminder of a time when political differences were often settled with sharp wit rather than bitter enmity. K.M. Mani’s record-breaking career and Karunakaran’s tactical brilliance continue to be a source of inspiration and study for the new generation of Kerala politicians.
