Thiruvananthapuram, Jan 12 Kerala Chief Minister Pinarayi Vijayan on Monday hit back at Union Home Minister Amit Shah’s claim that the state received increased central funds under the PM Narendra Modi's government, asserting that Finance Commission transfers are a constitutional right of states and not an act of generosity by the Centre.
Vijayan made the remarks while inaugurating a day-long protest by the Left Democratic Front, held along with Cabinet ministers, against what he termed the Centre’s "callous attitude" towards Kerala’s legitimate and long-standing demands.
"The distribution of funds through Finance Commissions is not anyone’s largesse. It is the constitutional entitlement of states," the Chief Minister said, accusing the Union government of "tampering with the terms of reference and criteria" of the Finance Commission to deny Kerala its rightful share.
Citing figures, Vijayan said Kerala received Rs 16,833 crore and Rs 19,038 crore in 2017–18 and 2018–19, respectively, under the 14th Finance Commission.
However, under the 15th Finance Commission, the state received Rs 11,560 crore in 2020–21, followed by Rs 17,890 crore in 2021–22, and Rs 18,961 crore in 2022–23.
"In effect, Kerala’s tax share has declined compared to the previous Commission period. Such a reduction has never happened before," he said.
The Chief Minister pointed out that much of the assistance during the 15th Finance Commission period came in the form of revenue deficit grants.
"These grants are also Kerala’s right. They were secured only after states collectively opposed the Centre’s discriminatory approach. They were not handed out as charity," he said, adding that without these grants, the decline in devolution would have been even steeper.
Vijayan further alleged that Prime Minister Modi had exerted pressure on the Finance Commission to reduce states’ tax share.
He cited a public statement by NITI Aayog CEO B.V.R. Subrahmanyam, who had said the Prime Minister sought to cut the states’ share from the recommended 42 per cent to 33 per cent.
"This is not an allegation by the Left. It was stated by a senior official of the Prime Minister’s Office himself, and it has not been denied," Vijayan said, demanding clarity from Amit Shah when "speaking with figures".
Accusing the Centre of attempting to "choke Kerala financially", the Chief Minister said such “fantasies” would not materialise on Kerala soil.
He also alleged that the Congress and the UDF were complicit in enabling these moves.
"Despite sustained pressure, Kerala has not weakened. We have achieved proud milestones across sectors," Vijayan said, calling on the people to unite against what he described as efforts to undermine the state’s economic and federal rights.
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