Kerala’s fiscal woes appear real
1 year ago

Kerala’s fiscal woes appear real

The Hindu  

Fiscal federalism, or rather its perceived erosion in recent times, has occupied centre stage in the increasingly strained financial relations between the BJP-led Union government and the Left-ruled Kerala government in the run-up to the 2024 Lok Sabha elections. She added that the Pinarayi Vijayan government was welcome to move the Court on the matter, but that it would merely offer her another venue to explain “what the story is really.” Ms. Sitharaman’s remarks evoked indignant replies from Mr. Vijayan and Mr. Balagopal, who, accompanied by their Cabinet colleagues, are on a State-wide bus tour meeting people. In a lengthy response, Mr. Balagopal repeated his claim that the State stood deprived of ₹57,400 crore in Central transfers and loan approvals in 2023-24 “compared to the previous fiscals.” At the heart of the latest round of fiscal fisticuffs are a set of payment demands made by Kerala on July 12 and October 7. While the LDF government accuses the Centre of “financially choking” Kerala for political gain, the Opposition Congress-led United Democratic Front has been critical of the State government’s extravagance.

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