Chief Minister Pinarayi Vijayan on Wednesday said Kerala would work with other States to move the Supreme Court against the Central government’s alleged trespasses on fiscal federalism.
Briefing reporters after a Cabinet meeting, Mr. Vijayan hinted that there was some merit in Congress Working Committee (CWC) member Shashi Tharoor’s statement the Central government fiscally discriminated against the southern States.
“It is true that the Centre shows financial inequity to some regions. Some States feel neglected and passed over for mega infrastructure development projects,” Mr. Vijayan said.
He attributed Kerala’s financial woes to the Centre’s denial of GST compensation, setting an unreasonable ceiling on the State’s borrowing limit, tweaking the principle of revenue neutrality in GST to disadvantage provincial governments, and whittling down the stake of States in the revenue divisive pool.
Mr. Vijayan’s said the Centre’s financial arbitrariness had caused Kerala an estimated ₹97,000 crore shortfall in annual revenue.
“Despite the best efforts of the Centre to strangle Kerala financially, the LDF government has fulfilled its developmental and welfare commitments. The GST regime had limited the taxation power of States to fuel and legal liquor. The LDF increased GST revenue by an estimated 22.4% (₹23,000 crores) through diligent tax administration and robust income generation measures last fiscal.”, Mr. Vijayan said.
Flays Opposition
Mr. Vijayan said the Opposition’s boycott of the week-long Keraleeyam festival showcasing the State’s achievements and aspirations fell flat. “The participation of Congress leader Mani Shankar Iyer and Bharatiya Janata Party (BJP) veteran O. Rajagopal and the huge public turnout testified to the festival’s success,” Mr. Vijayan said.
He announced the formation of a committee headed by the Chief Secretary to celebrate Keraleeyam on a grander scale with increased international participation in 2024.
Mr. Vijayan said Governor Arif Mohammed Khan’s suggestion that the Chief Minister should call on him to end the stalemate regarding the delay in signing Bills passed by the Legislative Assembly into law was superfluous.
“I have no problem calling on the Governor. Indeed, I have done so before and sent Ministers who piloted the Bills in the Assembly. Now, the matter is in the Supreme Court,” Mr. Vijayan said.
