The Opposition UDF staged a walkout in the Assembly on Tuesday, accusing the Left Democratic Front government of doing next to nothing to overcome the “grave financial situation” faced by the State.
The government has “miserably failed” in improving tax collection, checking wasteful spending and launching economic measures for handling the crisis, the Opposition members alleged, participating in a discussion in the House on the fiscal situation.
In the morning, responding to an adjournment motion moved by the Opposition, Chief Minister Pinarayi Vijayan had agreed to discuss the financial situation by suspending the day’s business. Thereafter, Speaker A.N. Shamseer had declared that the subject would be discussed for two hours from 1 p.m.
Congress MLA Roji M. John who had moved the motion seeking adjournment, held the 2016-2021 LDF government primarily responsible for the present crisis.
The State government’s failure in reorganising the tax machinery in line with the Goods and Services Tax regime, ensuring Integrated GST (IGST) inflow and tax revenues from gold trade and bar hotels were the principal reasons for the crisis, he said. Wasteful spending and financial mismanagement by the LDF government and the Union Government’s fiscal policies added to the State’s woes, he said.
Leader of the Opposition V.D. Satheesan, who termed the financial crisis the gravest in Kerala’s history, said the UDF cannot accept the LDF narrative that the Union government was solely to blame.
Finance Minister K.N. Balagopal had miserably failed in harnessing tax revenues. The tax administration is practically non-existent and the State has transformed into a haven for tax evasion, he alleged.
Mr. Satheesan said that Mr. Balagopal’s claim that the Centre had deprived Kerala of approximately ₹57,000 crore annually was blown out of proportion. In reality, the figure was ₹3,100 crore, he said.
Deputy Leader of the Opposition P.K. Kunhalikutty slammed the government for failing to put in place “economic measures” to tackle the crisis. The State government also failed to present its case strongly before the Union government and claim Kerala’s eligible share, he said.
In his reply, Mr. Balagopal held fast to the LDF government narrative that the BJP-led Union government was primarily responsible for the State’s financial ailment.
His “personal opinion,” he said, was that the Assembly should pass a unanimous resolution on the issue. The Finance Minister also sought to counter Mr. Satheesan’s charge regarding the volume of slashed central funds, saying that this year, Kerala was deprived of ₹21,000 crore in devolved taxes, ₹12,000 crore due to discontinuation of GST compensation, ₹8,400 crore in revenue deficit grant and ₹ 19,600 crore on account of slashed borrowing capacity.
Stressing the need for a united stand to press the State’s case, Mr. Balagopal urged the UDF to join the February 8 LDF protest at Jantar Mantar in New Delhi.
