Thiruvananthapuram, Jan 9 (PTI) Kerala Finance Minister K N Balagopal on Friday said the state would raise the financial constraints imposed by the Centre during the pre-budget meeting convened by the Union finance ministry ahead of the Union budget.
Speaking to reporters, Balagopal said he would attend the meeting scheduled to be held in New Delhi on Saturday.
He alleged that the Centre was regulating and restricting Kerala’s finances through policy decisions.
“Of the borrowing space allowed to the state, Kerala was to receive Rs 12,000 crore in the last three months of the current financial year. However, this was cut by nearly half to Rs 5,900 crore,” he said.
Balagopal said that in the current financial year, over Rs 17,000 crore due to the state had been curtailed by the Centre.
Apart from this, Rs 4,200 crore was reduced based on GDP and GSDP figures provided by the statistics department, he said, adding that the matter had already been raised with the Union finance minister.
He said Rs 4,700 crore was cut citing off-budget borrowings, Rs 3,300 crore under the Guarantee Redemption Fund, Rs 1,922 crore received only after the state approached the Supreme Court has been cut now, and Rs 965 crore was reduced citing discrepancies in GSDP and IGST figures.
“This is like foul play in the final overs of a match. This is the last phase of the financial year and also an election period,” he said, adding that such practices would invite blacklisting in sports but there was no such provision when the Centre was involved.
Balagopal said the borrowing cut was communicated after the local body election results were announced.
“We visited the Finance Ministry on December 24 and raised our concerns, but no further steps were taken,” he said.
He warned that such actions would severely affect Kerala, especially as the state government had announced several welfare measures, including an increase in welfare pension amounts, in November last year.
“Perhaps these actions were taken after the BJP and UDF were uncomfortable with the welfare initiatives,” he alleged.
Balagopal said despite attempts to destabilise the state’s finances, Kerala continued to carry out welfare activities effectively.
He urged Congress leaders and BJP MPs from Kerala to raise the issue if they had any responsibility towards the state.
The minister said he had informed the Union finance minister about Kerala’s improved financial growth based studies of RBI and others, improvement in fiscal consolidation and reduction in debt, all of which were acknowledged.
He said Kerala ranked sixth in the country in own revenue growth and that 70 to 72 per cent of the expenditure to run the state came from its own resources.
“In contrast, states like Bihar receive a large portion of their funds from the Centre. Around 15 states get nearly 50 per cent of their funds from the Centre,” he said.
Balagopal said Kerala ranked 18th among states in terms of borrowing and that there had been no major increase in the state’s debt.
He said Kerala’s GSDP increased from Rs 5.62 lakh crore in 2015–16 to Rs 12.49 lakh crore now.
“Our financial capacity has grown nearly threefold,” he said, adding that production and gross value added in the state had also increased.
Balagopal said Kerala would submit a memorandum at the pre-budget meeting, raising issues including revenue decline after GST, rubber price subsidy, paddy procurement price hike, railway development, Vizhinjam port and township development, and assistance for scheme workers.
He said the shrinking economy should be addressed and growth benefits should reach more people.
Responding to the Malayalam Language Bill, which Karnataka Chief Minister Siddaramaiah opposed claiming it would affect the Kannada-speaking minority in the border district of Kasaragod, Balagopal said there would be no discrimination against anyone living in Kerala.
He said he had not seen Siddaramaiah’s statement.
“One thing I can assure is that there is no discrimination against any section of people in the state. We are all living together in harmony,” he said. PTI TBA TBA ADB
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