The CPI(M) on Thursday alleged that the Left-ruled Kerala government is facing a ‘harsh discriminatory’ approach from the BJP-led dispensation at the Centre.
An editorial in the forthcoming edition of party mouthpiece Peoples Democracy says that because of this ‘prejudiced’ attitude, Kerala is experiencing a serious financial crisis. “The Modi government seems determined to thwart the LDF government’s development agenda by strangulating its finances,” it says.
The editorial says the Centre has all the powers to raise resources while the States are required to undertake development and social welfare expenditure that far exceed their revenue generating capacities. “While this is a common problem for all States, Kerala is being singled out for exceptional treatment by denying it its due share of taxes and resources,” it alleges.
Borrowing limits
Citing examples, the editorial says the Central government has reduced the funds that can be borrowed by Kerala in the last quarter of 2019-20. As per the budgetary allocation, the loan should have been ₹10,233 crore. But only ₹1,900 crore has been sanctioned. Instead of the ₹19,500 crore received as borrowing in last fiscal, it will just be ₹16,602 this year. In the place of the ₹3,200 crore loan received in the last quarter of 2018-19, Kerala will get only ₹1,920 in the last quarter of 2019-20, it adds.
The CPI(M) alleges that there is constant delay in receipt of GST compensation. The State also did not receive flood compensation given to seven other States despite facing floods in August 2019. “An additional Central assistance of ₹5,908.56 crore was granted to seven States from the National Disaster Response Fund (NDRF) for damages during the southwest monsoon in 2019, but not Kerala.”
Arrears
“Kerala has been one of the better performing States in the implementation of the rural employment guarantee scheme (MGNREGS). However, the Centre has been tardy in sending funds and arrears to the tune of ₹1,215 crore which are pending. For payment of paddy procurement also there are dues of ₹1,035 crore,” it says.
The party also alleges that the Union Budget for 2020-21 has further ‘neglected’ and done injustice to Kerala.
The 15th Finance Commission in its recommendations for 2020-21 has reduced Kerala’s share in the net proceeds of taxes to 1.94% from 2.5% recommended by the 14th Finance Commission. Even the recommended amount of tax devolution by the commission (₹16,616 crore) has not been allocated in the Budget. The State’s share in Central tax has been proposed at ₹ 15,236.6 crore as against ₹16.401 crore received in 2019-20, it says.
“The Modi government’s violation of federal norms and hypocrisy in talking about cooperative federalism is very much on display when it comes to its dealings with Kerala. The LDF government and the people of Kerala are not going to take these efforts to denigrate their state lying down. They will struggle to assert their rights,” it says.
