Kerala’s central funding slashed over development indices: CM Vijayan

Kerala Chief Minister Pinarayi Vijayan, leading a group of LDF ministers in a demonstration near Jantar Mantar, decried what he called the unfair slashing of central funds for Kerala, citing the state’s development indices.

| Updated: 08 February, 2024 4:32 pm IST

NEW DELHI: Kerala Chief Minister Pinarayi Vijayan, leading a group of LDF ministers in a demonstration near Jantar Mantar, decried what he called the unfair slashing of central funds for Kerala, citing the state’s development indices. The protest garnered support from opposition leaders nationwide, including senior Congress figure Kapil Sibal, as well as CPI(M) national secretary Sitaram Yechury and CPI leader D Raja.

CM Vijayan accused the central government of reducing financial allocations to the state over the past eight years, undermining the principles of federalism. Addressing the gathering, he highlighted initiatives like KIFFB and KSSPL aimed at state development, stressing that loans taken by these entities were not part of the state budget but were now being counted as state debt. He estimated Kerala’s loss at Rs 1.7 lakh crore since 2016-17.

Vijayan recalled the 2018 floods, lamenting the lack of special aid from the Centre and the state’s burden in financing rescue and relief operations. He criticised the central government for penalising Kerala’s successes in health, education, and population control, cutting allocations despite the state’s achievements.

“The central government had shown a similar attitude towards the state of Kerala during the time of the 2018 floods. The state did not receive any special package to overcome the difficulties following the floods and the following issues. The state was made to pay from its coffers for the rescue and relief activities. The state was even made to pay for the essential food materials that were provided by the Centre,” Vijayan said.

“After every financial commission, the tax collections of the state are falling to deeper levels. The Centre is cutting its share of money to the state by citing the achievements we have made in the field of health and education. When it comes to controlling population, Kerala has been successful in all its parameters. However, the state has been made to pay for it. Our shares have been curtailed in the name of our achievements. The Centre is not ready to allocate money for the various schemes that are on the anvil. This is a situation which is not prevailing in any other part of the world,” he added.

Opposition leader VD Satheeshan countered, attributing the financial crisis partly to the state’s fiscal mismanagement and excessive spending.