THIRUVANANTHAPURAM: In a major boost to the state government’s efforts to bring together non-BJP ruled states against the Union Government’s discrimination against states, Tamil Nadu Chief Minister M K Stalin has extended full support to Kerala’s efforts in this regard. The TN CM informed his Kerala counterpart Pinarayi Vijayan that the DMK would attend the protest by the Kerala Cabinet in New Delhi on February 8.
Stalin appreciated the efforts taken by the Kerala government in drawing the Supreme Court’s attention to the “pressing issue of the Union Government’s attempts to stifle state governments through arbitrary and discriminatory control over their deficit financing.”
He said though this has been happening for some time, the situation has rapidly deteriorated in the last few years and there’s a clear consensus emerging among progressive state governments that such indirect control over state finances needs to be done away with.
Referring to the communication from the Kerala chief minister, Stalin pointed out that the subject of public debt for financing the public expenditure of states is within the exclusive preview of the state legislature as per the Constitution.
“However, the Union Government has been misusing its powers under Article 293 of the Constitution to restrict borrowing spaces of states. The prior consent from the Union Government, mandated by this section, has been converted into a restrictive tool to limit deficit financing beyond the limits prescribed by the State FRBMs. As a result, the fundamental principles of fiscal federalism envisioned by Constitution makers are under grave threat,” he said. Stalin also listed out instances of significant cuts in Central share to Tamil Nadu.
The Union government has been making discriminatory and unconstitutional attempts at a time when fiscal autonomy of states has already been seriously curtailed by the implementation of GST, pointed out Stalin.
“A revenue shortfall of Rs 20,000 crore per annum is being faced by the Government of Tamil Nadu in comparison to the pre-GST regime and the Union has been refusing to extend the compensation regime. In summary, the intent seems to be aimed at crippling the states’ ability to raise resources and fund crucial developmental initiatives, as per their policy priorities. This needs to be resisted by like-minded progressive states,” said the letter.
The TN chief minister said he is in full support of the Government of Kerala’s commitment to preserving fiscal federalism. “The Government of Tamil Nadu is ready to extend its cooperation in this regard and we look forward to collaborating and synchronising our efforts to address the crucial challenge,” he said.
Pinarayi welcomes Stalin’s stance
Chief Minister Pinarayi Vijayan welcomed the TN chief minister’s response. Salutes to MK Stalin and DMK for extending solidarity and support for Kerala’s protest against the Centre’s discrimination towards states’ functioning and fiscal autonomy. “This gesture boosts our efforts to stand up and resist the vicious efforts to undermine the federal principles enshrined in our Constitution,” he posted on X.
