Kerala FM Balagopal uses budget presentation to criticise Centre’s alleged infringements on fiscal federalism
1 year, 10 months ago

Kerala FM Balagopal uses budget presentation to criticise Centre’s alleged infringements on fiscal federalism

The Hindu  

Balagopal used his budget presentation in the Kerala Legislative Assembly for 2023-24 fiscal to essay a critique of the Centre’s “conservative financial policies”. Politically loaded speech In a politically loaded budget speech, Mr. Balagopal made a clarion call to other non-Bharatiya Janata Party -ruled States and regional powers to join Kerala in the fight against what he termed attempts to “demolish the federal values of the Indian Constitution and reduce the fiscal space of States”. Mr. Balagopal’s averment seemed to dovetail with the Left Democratic Front political gambit to forge a broad agreement with regional parties heading non-BJP-ruled States to resist the Centre’s perceived infringements on fiscal federalism and alleged attempts to whittle down the budgetary independence of provincial governments. Mr. Balagopal said Kerala has endured despite being battered by global economic headwinds and the Centre’s stubborn financially conservative stance on borrowings for development.

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History of this topic

Kerala CM Pinarayi Vijayan Slams Union Budget for Ignoring State Needs
5 months ago

Kerala CM Pinarayi Vijayan Slams Union Budget for Ignoring State Needs

Deccan Chronicle  

Thiruvananthapuram: Kerala Chief Minister Pinarayi Vijayan on Tuesday slammed the budget presented by Union Finance Minister Nirmala Sitharaman in Parliament, stating it appears to discriminate between states. The chief minister noted that most states including Kerala have been overlooked in the Finance Minister's announcements, which were prefaced with the '8 Goals of National Importance'. The chief minister said after examining …

What is Kerala’s fiscal autonomy suit all about? | In Focus podcast
8 months, 1 week ago

What is Kerala’s fiscal autonomy suit all about? | In Focus podcast

The Hindu  

Is it okay for the Union government to impose limits on how much a State government can borrow? This question, raised by the Kerala government, has been referred to a Constitution Bench by the Supreme Court. The key constitutional question that the Supreme Court wants a five-judge bench to decide is: whether ‘fiscal decentralistion’ is an integral aspect of Indian …

Fiscal battle: On borrowings and Kerala’s suit
8 months, 2 weeks ago

Fiscal battle: On borrowings and Kerala’s suit

The Hindu  

The Supreme Court of India order referring a suit filed by Kerala, challenging the Centre’s decisions curtailing its borrowings, to a Constitution Bench is a welcome development. The Court declined to grant an interim order to restore the position prior to the imposition of borrowing limits by the Centre, but the referral will give a larger Bench an opportunity to …

SC blames Kerala for its financial woes, rejects state's request for additional borrowing
8 months, 3 weeks ago

SC blames Kerala for its financial woes, rejects state's request for additional borrowing

Op India  

On Monday, the Supreme Court rejected Kerala’s request for immediate relief, attributing the state’s financial woes to its mishandling of funds. Kerala’s plea for increased borrowing was turned down, and the court referred the state’s challenge against the Centre’s borrowing restrictions to a Constitution bench for further scrutiny. The court’s observation of financial mismanagement within the state countered LDF’s claims …

Kerala govt. refusing Centre’s ₹5,000 cr. one-time package is treachery, says Union Minister V. Muraleedharan
9 months, 1 week ago

Kerala govt. refusing Centre’s ₹5,000 cr. one-time package is treachery, says Union Minister V. Muraleedharan

The Hindu  

The Kerala government refusing ₹5,000 crore, the one-time package offered by the Centre as per the suggestion of the Supreme Court, is “treachery and a challenge to the people of Kerala,” Union Minister of State for External Affairs V. Muraleedharan has said. Speaking at a Face to Face programme organised by Kollam Press Club here on March 13, Mr. Muraleedharan …

CAG finds fault with Kerala’s off-Budget borrowings again
10 months, 1 week ago

CAG finds fault with Kerala’s off-Budget borrowings again

The Hindu  

Off-Budget borrowings have yet again drawn the criticism of the Comptroller and Auditor General of India whose latest audit report was tabled in the Kerala Legislative Assembly on February 15. Apart from borrowings made by the Kerala Infrastructure Investment Fund Board and the Kerala Social Security Pension Ltd, the borrowings under a bill discounting system also have drawn flak this …

Kerala is one of the most financially unhealthy States in the country, Centre tells SC
10 months, 2 weeks ago

Kerala is one of the most financially unhealthy States in the country, Centre tells SC

The Hindu  

The Centre has told the Supreme Court that Kerala was “one of the most financially unhealthy States” and debts run by States affect the credit rating of the whole country. The Union government said “substantial financial resources” were provided to the Kerala government from 2020-21 to 2023-24 over and above the amount recommended by the 15th Finance Commission. “Despite the …

The severe erosion of fiscal federalism
10 months, 2 weeks ago

The severe erosion of fiscal federalism

The Hindu  

On February 8, Kerala Chief Minister Pinarayi Vijayan will lead a protest in New Delhi against the Centre for “placing Kerala on a financial embargo”. Kerala has moved the Supreme Court contending that the Centre’s imposition of a Net Borrowing Ceiling on the State, which limits borrowings from all sources, violates Article 293 of the Constitution. Major infrastructure projects initiated …

‘Left’ to its own devices, Kerala government leans towards the centre
10 months, 2 weeks ago

‘Left’ to its own devices, Kerala government leans towards the centre

New Indian Express  

Taking an electoral position, he tried to appease various sections of society. Although the declaration to opt out of the contributory pension scheme, replacing it with an assured pension scheme, sounds rosy, it can only be taken with a pinch of salt given the state’s current fiscal troubles. Citing the reluctance to raise the borrowing limit and moves to curtail …

Kerala | A protest and a predicament
10 months, 2 weeks ago

Kerala | A protest and a predicament

The Hindu  

In India, Centre-State relations have often been characterised by friction. The decision by Kerala’s Pinarayi Vijayan-led Left Democratic Front government to take its running battle against the “crippling” policies of the Bharatiya Janata Party -led government at the Centre and its “neglect” towards the State all the way to Jantar Mantar, a place in New Delhi often used for protests, …

Kerala Budget: Not quite up to expectations
10 months, 2 weeks ago

Kerala Budget: Not quite up to expectations

New Indian Express  

A crisis is an opportunity, and the context of Kerala's budget for 2024 was configured for such spectacular and solid announcements. Though the announcement "Programmes are being planned to attract investment to the tune of at least Rs 3 lakh crores within the next three years" generated a lot of interest at the beginning of the budget speech, no clear …

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 …

Centre not responsible for financial crunch in Kerala, says Union Minister V. Muraleedharan
1 year, 1 month ago

Centre not responsible for financial crunch in Kerala, says Union Minister V. Muraleedharan

The Hindu  

Minister of State for External Affairs V. Muraleedharan on November 13, 2023 termed “baseless” the Kerala Government’s argument that the Centre was primarily responsible for the State’s financial problems. Blaming extravagance and financial mismanagement by the Left Democratic Front government for the fiscal crunch experienced by Kerala, Mr. Muraleedharan presented a set of figures on Central transfers under various components, …

Adverse Central policies will deprive Kerala of ₹57,400 crore this fiscal, says Balagopal
1 year, 1 month ago

Adverse Central policies will deprive Kerala of ₹57,400 crore this fiscal, says Balagopal

The Hindu  

Balagopal on Friday accused the Centre of launching an intensified offensive against the State on the fiscal front. Adverse Central policies will deprive the State of ₹57,400 crore in Central transfers and loan approvals in the current fiscal, Mr. Balagopal said in a statement on the State’s financial status. The situation is such that the State may have to bank …

Kerala’s borrowing limit cut drastically: Balagopal
1 year, 6 months ago

Kerala’s borrowing limit cut drastically: Balagopal

The Hindu  

In a move that could severely affect State finances, the Centre has drastically cut down the State’s borrowing limit, Finance Minister K.N. According to the Minister, the State would be deprived of about ₹20,000 crore due to the slashed borrowing limit and revenue deficit grant in 2023-24. The State’s open market borrowings had come under the spotlight after the Centre …

Kerala’s demands on infra, fiscal policy ignored in Union Budget, says State government
1 year, 10 months ago

Kerala’s demands on infra, fiscal policy ignored in Union Budget, says State government

The Hindu  

The Union Budget 2023 presented by Finance Minister Nirmala Sitharaman on Wednesday appears to have dashed Kerala’s expectations with respect to specific demands made on the infrastructure and fiscal policy fronts. Balagopal blamed the Budget for neglecting Kerala, particularly the demands made by the State on fiscal policy. That said, Ms. Sitharaman’s announcements with regards to an Agriculture Accelerator Fund …

Explained | Kerala’s mounting public debt
2 years, 4 months ago

Explained | Kerala’s mounting public debt

The Hindu  

The story so far: Over the past few months, Kerala’s mounting debt liabilities have been brought into sharp focus with the Reserve Bank of India, the Comptroller and Auditor General, and the opposition Congress-led United Democratic Front flagging the issue. Kerala Infrastructure Investment Fund Board A body corporate constituted by the Government of Kerala to mobilise financial resources outside of …

Centre eroding financial rights of States: Balagopal
2 years, 5 months ago

Centre eroding financial rights of States: Balagopal

The Hindu  

The State will have to move legally and constitutionally if the Centre continues to insist on eroding the financial rights of States, Finance Minister K.N. The States’ share of the Central tax revenue pool, which used to be 42% in the 14th Finance Commission, has now come down to 41%. The Centre has also been slashing the subsidies due to …

Revving up State finances a major challenge
2 years, 9 months ago

Revving up State finances a major challenge

The Hindu  

Balagopal is scheduled to present the State Budget for the 2022-23 financial year in the Assembly on Friday. Mr. Balagopal's maiden full budget is keenly awaited, given the State's pressing need to increase revenues and realistically tackle mounting debt liabilities, even as solutions are offered to spur economic growth and employment generation with the pandemic-induced health emergency showing signs of …

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