Kerala dismisses Centre's claim of 224% tax share given to the state

By Aishwarya Nair | First Published Feb 9, 2024, 12:01 PM IST

The Kerala government on Friday (Feb 09) dismissed the Central government's claim that the state was given a 224% tax share during the Modi government. Union Finance Minister Nirmala Sitharaman released the figures of shares provided to the southern states in the Rajya Sabha last day.

Thiruvananthapuram: The state government rejected the Union Finance Minister Nirmala Sitharaman's claim regarding the Centre's assistance to Kerala. The state government clarified that the tax share is not a free right of the Centre and it has not raised the allegation that the tax share has decreased.

FM Nirmala Sitharaman in the Rajya Sabha on Thursday released the figures of central funds received by Kerala during the NDA-led Modi government. She said that Kerala was given a 224% tax share more than during the UPA government. From 2004 to 2014, the tax allocation to Kerala was Rs 46,303 crore during the UPA regime. However, in the NDA regime, Kerala has received Rs 1,50,140 crore as tax share. During the UPA regime, Kerala received Rs 25,692 crore as a grant, but Rs 1,43,117 crore was given as a grant in ten years.

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However, the Kerala government alleged that the figures presented by the Union Finance Minister are exaggerated. The state also alleged that the grant included the GST compensation. Kerala also put forward the demand to review the norms of the Finance Commission.

Nirmala Sitharaman also made it clear that the Central Government has not made any changes in the recommendation given by the Finance Commission and has not cut the funds.

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