"Sharp decline in funds from Centre to Kerala": State Finance minister KN Balagopal

“Sharp decline in funds from Centre to Kerala”: State Finance minister KN Balagopal

Amid the ongoing tussle between non-BJP states and the Centre over the tax devolution mechanism, Kerala Finance Minister KN Balagopal on Saturday expressed concerns saying there has been a reduction in the percentage of funds that the soutern is getting from the Centre.

Speaking to ANI on Saturday, Finance Minister KN Balagopal said, “Look at the percentage of the money given to other states and then look at what is given to Kerala. The funds collected by the Union (government) increased 11 times during this period but the increase in tax to Kerala is only 8.8 times which means there is a sharp decline. So the reduction is huge and that is why states like Kerala, Punjab, Karnataka, and West Bengal are raising this issue.”

Kerala Finance Minister further stated that the state government is facing a shortage of funds to meet the expenditure for its social schemes.

“We are facing the problem of giving minimum necessary things as well. We have to give pensions to 62 lakh families who were entitled to one. However, the release of these pensions are getting delayed because of lack of payments from the Union,” he said.

Earlier on Thursday, a protest was led by Kerala Chief Minister Pinarayi Vijayan in Delhi against the central government’s alleged discrimination towards Kerala. The legislators were seen raising slogans against the central government and holding banners that read “Fight to protect Federalism”.

“Today, we are at a historical juncture of the Indian republic. A democracy that was envisaged as a ‘Union of States’ is slowly and steadily being crippled into an undemocratic ‘Union over States’. We are seeing its manifestations around the country, especially in opposition-ruled states,” Vijayan said at protests.

Similarly, Karnataka CM Siddaramaiah and his deputy DK Shivakumar on Wednesday held a protest at Jantar Mantar in the national capital to protest against the Centre’s tax devolution policies to the southern state.

However, the Centre has rejected such claims made by these states and said that allegations are “patently wrong and mischievous.”

The Finance Minister Nirmala Sitharaman said that these are “there are factual errors, false monetary claims, misleading statements, and selective mention of certain losses allegedly suffered without mentioning the gains that have accrued to the state (Karnataka) in the 15th Finance Commission period.”

Earlier, Prime Minister Modi on Wednesday ripped into the Congress for allegedly working against the “interests of the nation and said that attempts are being made to divide the country over funds.

“Some are trying to divide the country over funds. What can be a bigger misfortune for the country? Such a mindset is being demonstrated by a responsible national party. It is unfortunate! Our tax, our money! What language is being used? This is dangerous for the future of the country,” PM Modi said.