THIRUVANANTHAPURAM: With states ruled by non-BJP governments gearing up to protest in Delhi against the fiscal policies of the Union government, Kerala Finance Minister KN Balagopal on Sunday said the opinions emerging across the country vindicated the state’s contention that Centre was denying states their fiscal rights.
Pointing out to protests planned by states such as Karnataka, West Bengal, Delhi and Telangana against the Centre, Balagopal, in an article on the eve of the February 5 state budget presentation, said, “Many states are openly complaining that they are being ignored. They are preparing to protest demanding a change in the Centre’s position. Kerala has for years been saying that states are being denied financial rights.” He said by showing political antagonism, the Centre was undermining the financial rights of Keralites.
“Whenever the LDF government raised the issue, the Congress and UDF in Kerala joined hands with BJP and ridiculed it. Some even opined that several central schemes and assistance were unnecessary. Parties accountable to people need to pay attention to the issue. The Centre’s economic sanctions are not against the LDF government but against Kerala as a whole. This is where the unity of all Keralites is needed...,” he said.
Balagopal said the state government decided to approach the Supreme Court and express its protest against the Centre as a protest in Delhi after all its efforts for taking up the issue were ignored.
When Kerala government’s petition against the denial of economic rights was considered in the top court, the attorney general appearing for the Centre said only Kerala had a complaint. However, the protests planned by various states have removed all doubts, Balagopal said.
The state government decided to hold a protest in New Delhi on February 8 by including ministers, MLAs and MPs. The opposition in Kerala, as well as national leaders of the INDIA bloc and representatives of parties, were invited.
The Karnataka government is planning a similar protest in New Delhi on February 7. Karnataka CM Siddaramaiah has requested the opposition to take part too.
West Bengal CM Mamata Banerjee has announced that she would stage a strike in Delhi to protest the Union government’s stance against the state. The Telangana and Delhi governments are also on the path to launch an open strike against the Centre.
Balagopal said the issue was not restricted to non-BJP-ruled states. “Almost all states are in a similar situation. All raise such issues in informal communications at the GST Council, where finance ministers meet. The question of who will bell the cat is bothering most states,” he said.
Shortfall in central allocation to Kerala
Revenue deficit grant: Rs 8,400 cr
Shortfall due to abolition of GST compensation: Rs 12,000 cr
Loss due to reduction in tax rate from 3.58% to 1.925%: Rs 18,000 cr
Total: Rs 57,400 cr
Kerala’s dues from central schemes
UGC pay revision allocation: Rs 750 cr
Grant to local boRs ies: Rs 1,921 cr
Allocation for fooRs security scheme, incluRs ing paRs Rs y procurement: Rs 1,100 cr
Allocation for relief: Rs 139 cr
State Rs isaster Mitigation FunRs : Rs 69 cr
Capital Investment Special Assistance (CAPEX): Rs 3,000 cr
GST compensation: Rs 511 cr
Total: Rs 7,490 cr