Daijiworld Media Network - Thiruvananthapuram
Thiruvananthapuram, Jan 12: Kerala Chief Minister Pinarayi Vijayan on Monday strongly countered Union Home Minister Amit Shah’s assertion that the state benefitted from increased central funding under the Narendra Modi-led government, stating that Finance Commission transfers are a constitutional entitlement of states, not discretionary support from the Centre.
Vijayan made the remarks while inaugurating a day-long protest organised by the Left Democratic Front (LDF), along with members of the state Cabinet, against what he described as the Union government’s “indifferent and unfair” approach towards Kerala’s long-pending demands.
“The allocation of funds through the Finance Commission is not an act of benevolence by the Centre. It is the constitutional right of states,” the Chief Minister said. He accused the Union government of altering the Finance Commission’s terms of reference and evaluation criteria in a manner that deprived Kerala of its legitimate share.
Highlighting official data, Vijayan noted that Kerala received Rs 16,833 crore in 2017–18 and Rs 19,038 crore in 2018–19 under the 14th Finance Commission. In contrast, during the 15th Finance Commission period, the state was allocated Rs 11,560 crore in 2020–21, Rs 17,890 crore in 2021–22, and Rs 18,961 crore in 2022–23.
“These figures clearly show that Kerala’s share of tax devolution has fallen compared to the previous Finance Commission. Such a decline has never occurred in the past,” he said.
The Chief Minister further explained that a significant portion of the funds received during the 15th Finance Commission term came as revenue deficit grants. He stressed that these grants, too, were a rightful entitlement of the state and were secured only after collective resistance by states against what he called a discriminatory approach by the Centre.
“They were not given as charity. Without these grants, the reduction in devolution would have been far more severe,” Vijayan added.
Alleging direct political interference, Vijayan claimed that Prime Minister Narendra Modi had influenced the Finance Commission to curtail the states’ share of central taxes. He referred to a public statement by NITI Aayog CEO B.V.R. Subrahmanyam, who had reportedly said that the Prime Minister wanted to reduce the states’ share from the recommended 42 per cent to 33 per cent.
“This is not a charge made by the Left alone. It was stated by a senior official from the Prime Minister’s Office and has never been denied,” Vijayan said, urging Amit Shah to maintain accuracy when citing figures.
Accusing the Centre of attempting to financially suffocate Kerala, Vijayan said such attempts would not succeed. He also alleged that the Congress-led United Democratic Front (UDF) had played a role in facilitating these developments.
Despite what he termed sustained pressure from the Centre, Vijayan said Kerala had remained resilient and continued to achieve significant progress across sectors. He called upon the people of the state to stand united in defence of Kerala’s economic interests and federal rights.