New Delhi, seeking more funds to tide over the state's financial woes, Kerala Finance Minister K. N. Balagopal on Sunday said the Center should have a state-specific financial approach instead of a uniform one towards states as each of them has different types of development activities.
Balagopal, part of the CPI(M)-led Left Democratic Front (LDF), which is in power for the second consecutive term in the southern state, stressed that monolithic thinking on overall development is not practical and also called for flexibility in the use of central resources. Sponsored Schemes (CSS) as per state requirements.
Showing serious concerns over shrinking central fund transfers and borrowing restrictions, Kerala has demanded a special package of Rs 24,000 crore in the upcoming Union Budget to address liquidity stress.
"A monolithic thinking about the overall development and administration of the country is not practical in India because different states have to be considered differently, keeping in mind the development and unity of the country..." he said in an interview in the national capital.
According to the senior CPI(M) leader, Kerala's share in the divisible fund came down to 1.92 per cent during the 15th Finance Commission period, compared to 3.87 per cent during the 10th Finance Commission. Finance.
He expressed hope that the central government can take very seriously the problems faced by the states, because the different state problems were very evident in the election results.
In the Lok Sabha polls, the BJP-led National Democratic Alliance (NDA) returned to power for the third consecutive term, but the BJP won fewer seats than expected.
Balagopal highlighted that Kerala's activities in terms of management and revenue generation are among the best and the state has a very good number of social security measures as well as a very good Panchayati Raj system.
During the period from 2020-21 to 2023-24, the state's tax revenue increased from around Rs 47,660 crore to Rs 74,258 crore, while its non-tax revenue soared from Rs 7,327 crore to Rs 16,318 crore. .
Furthermore, the state's revenue deficit decreased from Rs 20,063 crore to Rs 17,348 crore during the same period.
"The people and government of Kerala are being affected not by their actions but by the Finance Commission's policy of dividing revenue among states," he said and hoped that the central government would take some positive steps that are specific to the state. . .
For Kerala, some of the crucial issues are rapid aging of the population, which will require allocation of resources for rapid care of the elderly, coastal erosion, disaster preparedness, flood management and man-to-man conflict. And animals.
In this context, Balagopal said the state should have flexibility to use CSS.
The minister cited as an example that when the central government planned to provide toilets in every house, the State achieved the target much earlier. "Whether we have to wait longer to get the next development. These are the questions."
"Different states have different types of development activities, styles... you cannot have a uniform decisive factor. In a country with diversities, there is a spirit of India that is unifying us. The difference of the historical and traditional state that has to take into account...how states should be supported through different (approaches)," he said.
Listing out the financial challenges faced by the state, Balagopal said there has been a sharp cut in funds from the divisive fund, a reduction in borrowing limits and fiscal problems in terms of participation post the implementation of the Goods and Services Tax (GST). GST).
On June 27 he met Union Finance Minister Nirmala Sitharaman. While making various demands for funding, Balagopal, representing him, also said that Kerala has been taking prudent measures and efforts to improve its finances, especially in terms of improving own revenue and controlling fiscal and revenue deficits.
Balagopal, part of the CPI(M)-led Left Democratic Front (LDF), which is in power for the second consecutive term in the southern state, stressed that monolithic thinking on overall development is not practical and also called for flexibility in the use of central resources. Sponsored Schemes (CSS) as per state requirements.
Showing serious concerns over shrinking central fund transfers and borrowing restrictions, Kerala has demanded a special package of Rs 24,000 crore in the upcoming Union Budget to address liquidity stress.
"A monolithic thinking about the overall development and administration of the country is not practical in India because different states have to be considered differently, keeping in mind the development and unity of the country..." he said in an interview in the national capital.
According to the senior CPI(M) leader, Kerala's share in the divisible fund came down to 1.92 per cent during the 15th Finance Commission period, compared to 3.87 per cent during the 10th Finance Commission. Finance.
He expressed hope that the central government can take very seriously the problems faced by the states, because the different state problems were very evident in the election results.
In the Lok Sabha polls, the BJP-led National Democratic Alliance (NDA) returned to power for the third consecutive term, but the BJP won fewer seats than expected.
Balagopal highlighted that Kerala's activities in terms of management and revenue generation are among the best and the state has a very good number of social security measures as well as a very good Panchayati Raj system.
During the period from 2020-21 to 2023-24, the state's tax revenue increased from around Rs 47,660 crore to Rs 74,258 crore, while its non-tax revenue soared from Rs 7,327 crore to Rs 16,318 crore. .
Furthermore, the state's revenue deficit decreased from Rs 20,063 crore to Rs 17,348 crore during the same period.
"The people and government of Kerala are being affected not by their actions but by the Finance Commission's policy of dividing revenue among states," he said and hoped that the central government would take some positive steps that are specific to the state. . .
For Kerala, some of the crucial issues are rapid aging of the population, which will require allocation of resources for rapid care of the elderly, coastal erosion, disaster preparedness, flood management and man-to-man conflict. And animals.
In this context, Balagopal said the state should have flexibility to use CSS.
The minister cited as an example that when the central government planned to provide toilets in every house, the State achieved the target much earlier. "Whether we have to wait longer to get the next development. These are the questions."
"Different states have different types of development activities, styles... you cannot have a uniform decisive factor. In a country with diversities, there is a spirit of India that is unifying us. The difference of the historical and traditional state that has to take into account...how states should be supported through different (approaches)," he said.
Listing out the financial challenges faced by the state, Balagopal said there has been a sharp cut in funds from the divisive fund, a reduction in borrowing limits and fiscal problems in terms of participation post the implementation of the Goods and Services Tax (GST). GST).
On June 27 he met Union Finance Minister Nirmala Sitharaman. While making various demands for funding, Balagopal, representing him, also said that Kerala has been taking prudent measures and efforts to improve its finances, especially in terms of improving own revenue and controlling fiscal and revenue deficits.
