THIRUVANATHAPURAM : The assembly on Tuesday witnessed a heated debate between the Opposition and the ruling front over the financial crisis faced by the state. The discussion on the adjournment motion moved by Congress MLA Roji M John also saw the Opposition questioning the government’s claim of a loss of Rs 57,000 crore to the state due to the changed policies of the Union government.
Leader of Opposition V D Satheesan said the state government was trying to create a narrative that the Centre’s neglect is the only reason for the crisis. “It is only one of the reasons,” he said.
“The finance minister said the state was denied funds worth Rs 57,000 crore. Another LDF MLA said the figure was Rs 61,000 crore. But the state finance minister’s letter to his Union counterpart last year said the amount due to the state was Rs 32,000 crore. The figure would come down to Rs 3,100 crore when the claims on revenue deficit grant, GST compensation and cut in borrowing limit are excluded,” Satheesan said. He said the state has become a tax haven under the LDF government. The GST growth rate in the current fiscal is 12%. The taxes department is ill-equipped to deal with the GST regime. There is huge tax evasion in gold sales.
Finance Minister K N Balagopal said the 15th Finance Commission’s decision to lower the devolution rate for the state, from 2.5 to 1.92, and the Centre’s flawed policies are to be blamed for the crisis. Even during the crisis, the disbursal through treasuries rose from Rs 1.21 lakh crore to Rs 1.26 lakh crore.