Kerala budget 2024: Quest for revenues amid Union government’s financial curbs

Not only Kerala, but Karnataka, Tamil Nadu, West Bengal, Telangana, Punjab, and Delhi say Union govt is financially strangulating states.

ByPTI

Published Feb 04, 2024 | 10:27 AMUpdatedFeb 04, 2024 | 10:27 AM

Kerala finance minister borrowing policy

Kerala Finance Minister KN Balagopal has said the public will appreciate the upcoming 2024-25 budget which is aimed at increasing the revenue of the southern state that has been grappling with alleged financial restrictions and discrimination by the Union government.

Addressing the media in the state capital Thiruvananthapuram, Balagopal said the ruling Left government has its limitations due to financial strangulation by the Union government, but the budget will aim to carry forward the achievements and development of Kerala.

“The public will appreciate the upcoming budget which is aimed at increasing the revenue of the state. However, the government has got its limitations. But the people have faith in the government that we will do everything for them and the state,” he said on Saturday, 3 February.

The Kerala budget will be presented on 5 February.

Also Read: With Delhi protest just days away, Kerala CM Vijayan urges everyone to join fight against Union government

Targeting the Congress

The Left leader continued his attack on the Opposition Congress-led UDF in Kerala, which on Friday boycotted the Assembly just before the House passed a unanimous resolution against the Union government accusing it of destroying the federal structure of the country by financially strangulating the state.

“It’s poetic justice that the Karnataka unit of the Congress party today announced a protest against the Union government in Delhi over its mistreatment of that state government, a day after the Congress leaders here walked out of the Assembly before the resolution,” Balagopal said.

He was referring to the protest announced by the Karnataka Congress against the alleged step-motherly treatment by the BJP-led Union government in the interim budget and other fund allocations.

Karnataka Congress has decided to stage a protest in New Delhi on 7 February. The Left party had earlier announced that a protest led by Chief Minister Pinarayi Vijayan will be held at the national capital on 8 February.

Also Read: Union govt deliberately caused financial crisis in Kerala, alleges CPI(M) state secretary

‘BJP against Opposition-ruled states’

Balagopal said not only Kerala but states including Karnataka, Tamil Nadu, West Bengal, Telangana, Punjab, Delhi and others are of the opinion that the Union government was financially strangulating the state governments and destroying the federal structure of the country.

“Kerala’s economy faces unprecedented financial difficulties because of unfairness and inequality in Centre-State financial relations. A series of policies by the Government of India has resulted in a drastic decline in central transfers to the state, as we all know,” Balagopal said.

On Friday, the Kerala Assembly passed a unanimous resolution which accused the Union government of destroying the federal structure of the country by financially strangulating the state.

Even though the Opposition was not present in the Assembly, Speaker AN Shamseer announced that the resolution had been passed unanimously.

Introducing the resolution, Balagopal said that the Union government has reduced Kerala’s borrowing limit and slashed the revenue deficit grant.

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