Kerala CM accuses Centre of undermining federal principles, cutting funds

Kerala CM Pinarayi Vijayan accused the Union government of undermining federalism by slashing the state's borrowing limits. He said the discriminatory cuts forced the LDF to protest and protect Kerala's constitutional rights.

Kerala Chief Minister Pinarayi Vijayan on Monday accused the Union government of undermining federal principles and violating the state's constitutional rights by imposing last-minute and "discriminatory" cuts on Kerala's borrowing limits, forcing the Left Democratic Front (LDF) to take to the streets in protest. Addressing an LDF-led satyagraha, Vijayan said the situation Kerala is facing "should never occur in a democratic country."

"What is happening to Kerala is something that should never occur in a democratic country. The Union rulers, who assume absolute authority, are arbitrarily and discriminatorily usurping our rights. These are constitutional rights, and it is to protect those rights that we are being forced to take to the streets," Kerala CM said.

CM Alleges Deliberate Plan to Weaken Kerala

The Kerala CM alleged that the Centre had slashed the borrowing limit, threatening state's end-of-year finances "This is the situation Kerala is facing today. From January through March, the Union government cut the funds available for the state's utilisation by more than half at the last minute. Kerala was entitled to ₹12,000 crore. It is not possible to move forward relying only on revenue income; borrowing is also essential, especially to meet end-of-year expenditures. Of the ₹12,000 crore borrowing limit, ₹5,900 crore has been denied without justification. This is not all. Under centrally sponsored schemes implemented in the country, including those in Kerala, the state first spends its own funds," he added.

CM Vijayan added that Centre's actions were not merely aimed at the state government but amounted to a broader attempt to weaken Kerala as a whole, affecting all sections of society. "These actions cannot be seen as targeting only the state government. They affect all sections of the people and amount to a policy that squeezes Kerala as a whole. What is happening is part of a deliberate and well-planned approach. Planning should be meant to lead a state towards progress, but the Union government is attempting to weaken and undermine Kerala," he said.

"Kerala is a state that has made contributions to the country that we can be proud of. The Centre is trying to dismantle our achievements in health, education and welfare sectors. Union authorities have repeatedly questioned why Kerala provides welfare benefits on such a large scale. Kerala has refused to accept that line of thinking. There are schemes launched in the name of the Prime Minister with much fanfare, but what Kerala experiences instead is obstruction and denial," he added.

This comes amidst a the LDF satyagraha led by Chief Minister Pinarayi Vijayan which was held on Monday, protesting what the state government termed as the Centre's "anti-people policies" and continued financial discrimination against Kerala.

Revenue Minister Slams Centre's 'Harsh Measures'

Kerala Revenue Minister K. Rajan also accused the Union government of imposing unprecedented restrictions that undermine the federal structure of the country. He said the Centre was pushing through extremely harsh measures that should not be implemented in a federal system. "The country has reached a stage where extremely harsh measures, ones that should not be implemented within a federal system, are being pushed through. Towards the end, during January, February and March, all kinds of cuts, neglect towards Kerala, and even severe discrimination were continued," Rajan said

Details of Unjustified Borrowing Restrictions

He pointed out that Kerala's permissible borrowing limit, after completing all statutory procedures, stands at ₹12,000 crore. Of this, ₹3,500 crore had already been deducted earlier under the 'guarantee reduction fund'. Despite this, the Centre issued a stringent directive on December 17, soon after the local body elections, stating that Kerala cannot borrow ₹5,900 crore from within the remaining limit, without providing any specific justification.

Rajan added that no explanation had been given either to the Kerala government or even within the Union Finance Ministry regarding the restrictions. "Now, after undermining all the state's borrowing rights, the Centre is preventing Kerala from accessing nearly ₹6,000 crore out of the ₹12,000 crore that should be available during January, February and March. What is the reason for this? No explanation has been given either to Kerala or to the Union Finance Ministry itself. This clearly reflects a political objective to isolate Kerala, something the Union government itself cannot justify through reasoned arguments," he added. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)