Thiruvananthapuram, Mar 24 (PTI) Kerala Finance Minister K N Balagopal on Monday said the country is going through a challenging period in which the rights of states are “under threat”, and even economically sound states are facing “unprecedented financial strains” due to the Centre’s fiscal policies.
He stated that there has been a 20 per cent decline in central allocations to the state. However, despite the financial restrictions imposed by the union government, the state’s expenditure has increased significantly.
Speaking during the discussion on the Kerala Appropriation Bill 2025, Balagopal said if the state were allowed to utilise its financial resources, it would not have faced such financial difficulties.
He pointed out that while the Centre has allocated ₹25 lakh crore for states, Kerala received only ₹35,000 crore, even though it was entitled to ₹75,000 crore.
He further alleged that the state is not only being denied its rightful allocations but is also being forced to engage in branding for projects implemented with central assistance.
Reiterating his concerns, he emphasised that the country is experiencing a difficult phase and that the rights of states are under severe threat.
He also claimed that even economically strong states like Telangana, Himachal Pradesh, and Karnataka are facing financial constraints similar to Kerala due to the Centre’s fiscal policies.
Rejecting the opposition UDF’s allegations of financial mismanagement, Balagopal asserted that the LDF government’s sound fiscal management has led to increased revenue and expenditure in the state.
He noted that 73 per cent of the state’s planned expenditure has been completed, while project allocations to local bodies have reached 94.5 per cent.
Additionally, he stated that tax revenue had increased from ₹25,718 crore in 2011-12 to ₹81,627 crore in 2024-25, with a target of ₹91,515 crore for the next financial year.
The Kerala Appropriation Bill 2025 was passed after Speaker A N Shamseer put it to a voice vote.
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