New Delhi, Feb 7 Southern states of Karnataka and Kerala have joined hands to corner the Centre over latter’s fiscal policy and have alleged partisan approach in allocating GST share and grants to the Opposition-ruled states.
Taking the ‘tax fight’ to Delhi, Karnataka Chief Minister Siddaramaiah on Wednesday hit the Delhi streets along with his ministers to rally against the Centre’s alleged ignorance towards the Congress-ruled state.
On Thursday, the LDF-led Kerala government has also planned similar protest in the national capital.
Amid the clamour of ‘step-motherly treatment’ by Opposition-ruled states, the Kerala BJP on Wednesday punched holes in the ‘exaggerated and unsubstantiated’ claims by the two governments.
Prakash Javadekar, the BJP MP and Kerala’s election-in charge, released a detailed press note to debunk the litany of charges and allegations.
He accused the Pinarayi Vijayan government in Kerala of shifting blame to Centre for its own failures and shortcomings and said that there was palpable anger among locals due to the hiked taxes in the state government’s budget.
Javadekar said that Kerala government was allocated more than 300 per cent funds under BJP-led NDA, as compared to Cong-led UPA but the Vijayan government failed in capitalising on the opportunity and has now resorted to political mudslinging for saving its face.
Giving a detailed break-up of Centre’s fund and grants allocation to the state, Javadekar said that the Modi government accepted Finance Commission’s recommendation to raise devolution from 32 per cent during UPA govt to 42 per cent.
He said that this was an exponential rise in the devolution of funds to the states, moreover, 7.5 per cent was given to the Panchayats and Zila Parishads.
Further, exposing the allegations of Kerala government, Javadekar said: “Total Central assistance including Tax Devolution, Finance Commission Grants, Centrally Sponsored Schemes and other schemes during 5 years of UPA Govt since 2009 to 2014 were just Rs 70, 838 crores. On this backdrop Modi government has given Kerala Rs 22, 9844 crores during 2017 to 2022.
He also listed a series of schemes, currently operational in Kerala and they have been 100 per cent financed by the Modi government.
Further blasting Kerala government on its inadequacies, he accused the UDF dispensation of creating roadblocks in development and also depriving the farmers of the benefits of Kisan Samman Nidhi Yojana.
“Kerala has been one of the most financially unhealthy and improperly managed states. The 12th Finance Commission has warned Kerala for deteriorating debt situation in terms of debt-GSDP and Interest Payment to revenue receipts. Kerala has lowest Capital Expenditure @ 1.1 per cent,” he said.
Javadekar also said that as per 14th Finance Commission, Kerala, Punjab and West Bengal were only three states with revenue deficit.
He said that it was because of faulty policies, Kerala failed in limiting its fiscal deficit and it was now designated as a ‘highly debt stressed state’.
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