On Friday, the Kerala Assembly passed a resolution criticising the Union government for allegedly trespassing on the fiscal and jurisdictional powers of the State by voice vote and without debate. The Congress-United Democratic Front (UDF) boycott of the day’s business precluded the Opposition from debating the motion.
Finance Minister K.N. Balagopal tabled the resolution, which accused the Union government of attempting to strip States of their authority. He said the Centre had systematically reduced the States’ share of national revenue. It allegedly ignored that States bore most of the capital expenditure for infrastructure development schemes and underwrote most social welfare programmes. The resolution said the 15th Finance Commission had recalibrated the devolution of taxes to deny provincial governments their legitimate share.
Cut in borrowing limit
It said the Centre hauled down the borrowing limit of States with retrospective effect from the 2020-21 fiscal year, thereby hobbling development and rendering the social security net financially vulnerable. Moreover, it has systematically whittled grants for health, agriculture, rural employment and education sectors.
The motion termed the Centre’s actions detrimental to the spirit of cooperative federalism enshrined in the Constitution. Mr Balagopal said the Centre’s actions were tantamount to trespasses on the exclusive jurisdictional power of provincial governments in subjects mentioned on the States’ List.
The resolution demanded that the Centre abandon its stance that States were subaltern entities.
