THIRUVANANTHAPURAM: The Union Budget came as a dampener for Kerala as none of its demands, including a special package to compensate for the revenue loss and an AIIMS, went unheeded. In fact, Kerala was not even mentioned in the Budget, the first since Kerala elected its maiden BJP MP. Chief Minister Pinarayi Vijayan said the Budget adopted a negative approach to Kerala’s progress.
“The neglect of the state’s long-pending demands is a challenge to people. The demand for an AIIMS was not considered. Kerala was not considered in disaster relief programmes and in tourism. The neglect is disappointing and condemnable,” he said.
Pinarayi said the Budget infringed upon the state’s limited rights on taxation. “States too bear a part of the cost of centrally-sponsored schemes. In the Budget, the Centre infringed on the state’s taxation right in matters including urban development.
“The Union Finance Minister had said states should reduce stamp duty. States have limited avenues for own tax revenue after GST implementation. This Budget has made an attempt to impose conditions on stamp duty,” the chief minister said, adding that a joint effort will be made to raise Kerala’s demands before the Centre. Finance Minister K N Balagopal said the Modi government turned the Budget into a political gimmick.
“The Budget has utter disregard for cooperative federalism. The Union government is utilising the resources of the entire nation, but is not ready to give due consideration to the states. Instead, it used the Budget to protect the interests of ally parties,” Balagopal said. He also slammed the Centre for not considering the state’s demand for a special package worth Rs 24,000 crore to compensate for losses due to the cut in eligible borrowing limit. “The BJP and PM had promised huge changes for Kerala if the party got a Lok Sabha seat. However, when the party opened its account in the state, Kerala’s accounts were locked,” he said.
Demanded, not met
The Centre did not consider state’s other demands raised at pre-Budget consultation. These included a special package for further works of Vizhinjam Seaport, support for tunnel road connecting Wayanad and Kozhikode, modernising and strengthening railway infrastructure, raising support price for rubber and aid to rejuvenate traditional industries.