Union Finance Minister Nirmala Sitharaman on Saturday countered the Kerala government narrative that the Centre was unjustly withholding funds, blaming the State government for failing to furnish the necessary documents on time to get its money.
Ms. Sitharaman, addressing a a credit outreach programme organised by banks at Attingal and a business conclave organised by the Kerala Kaumudi in Thiruvananthapuram, said “not one rupee” is held back by the Centre from money due to State governments, provided they furnish the Accountant General’s (AG) certificates to the Finance Ministry on time.
Ms. Sitharaman added that if the Kerala government opted to approach the Court on the issue, it was welcome to do so. “It gives me one more opportunity to put the facts before the court to say this is what the story is really,” she said.
Listing six instances where the centre has been charged with withholding funds, Ms. Sitharaman said no arrears are pending in the case of the social security pensions. A sum of ₹602.14 crore was released in October 2023. “The first request came and we released the money. The second request has not come. There is nothing pending on pensions,” she said.
In the case of the special assistance for capital expenditure, Kerala did not receive the money because it has been changing the name of the schemes. This assistance is being given to States from 2021-22 for 50 years sans interest.
The 7th UGC pay revision arrears were pending as Kerala failed to furnish the required details, Ms. Sitharaman said. The Kerala government sent a proposal “which had a lot of unanswered questions.” The State was directed to furnish a full proposal by March 31, 2022, but it has not done so. “And it may not be possible now to release that central share because you have not furnished that proposal,” she said.
A sum of ₹137 crore was pending in health sector grants, as the State government did not adhere to the recommendations of the 15th Finance Commission. In the case of the arrears in Goods and Services Tax compensation, the revenue figures have to be cleared by the AG.
A sum of ₹259.63 crore was transferred on October 5 to the State in accordance with the requirements under the National Food Security Act. The arrears for the period from 2018-19 to 2022-23 have been settled, the Union Minister said.
